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2016 (9) TMI 1510 - AT - Income TaxLevy of penalty u/s 271(1)(c) - filing of belated return of income only after conduct of search operation u/s 132 and after issuing notice u/s 153A - HELD THAT:- After scrutiny of seized materials and verification of particulars filed by the assessee, the AO found that the assessee has made undisclosed investments. During the course of penalty proceedings, the assessee has simply stated that out of the three additions made, the assessee has agreed for the addition made on unexplained investment to the tune of ₹.60 lakhs to have amicably settled with the Department. The assessee did not have any credible and cogent explanation for not offering the income in the form of unexplained investment in property before the search operation; he was bound to agree for the quantum addition and not preferred any appeal before the first appellate authority against various additions made by the Assessing Officer. Just because the assessee has agreed for addition of undisclosed investment in property, he cannot be escaped from levy of penalty - assessee has no valid reason for concealment and furnishing inaccurate particulars in the belated return filed against the notice under section 153A of the Act. In this case, neither the assessee filed his return before due date of filing of return of income nor furnished complete particulars of income or even after service of notice under section 153A of the Act, the assessee has furnished complete and true particulars of income. Furnishing of inaccurate particulars by the assessee would not have detected at all if the search operation had not been conducted by the Department and the case not taken up subsequently for further scrutiny. Since the assessee has no valid reason for concealment of income and furnishing of inaccurate particulars, penalty under section 271(1)(c) of the Act clearly attracts in this case. - Decided against assessee.
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