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2017 (1) TMI 108 - AT - Income TaxPenalty u/s 271(1)(c) - as per revenue assessee has deliberately concealed particulars of his income and furnished inaccurate particulars of his income, which is evident from the fact that the department had unearthed several discrepancies during the course of survey - assessee admitted additional income through revised returns - Held that:- The assessee has admitted additional turnover to cover up the deficiencies found during the course of survey. The assessee also filed revised returns in response to notice u/s 148 of the Act, admitting additional turnover disclosed during the course of survey. The assessee has estimated net profit of 17.5% on such additional turnover. Though the A.O. has estimated 60% net profit on additional turnover, the ITAT finally directed the A.O. to estimate net profit of 20% on additional turnover declared by the assessee. Though there is a slightly higher income finally assessed consequent to the findings of the ITAT, it is mainly because of estimation of net profit which cannot be considered as concealment of income, which warrants levy of penalty u/s 271(1)(c) of the Act. We further observed that when assessee surrendered additional income to cover up the deficiencies found during the course of survey and offered additional income by filing revised return in response to notice u/s 148 of the Act, the A.O. was incorrect in levying penalty for concealment of particulars of income and furnishing inaccurate particulars of income. It is not automatic that whatever amount has been offered by the assessee, penalty is to be imposed. Generally, concealment provision cannot be invoked in case of surrender of addition, if surrender is made specifically on condition that no penalty will be levied or if surrender is made with a view to buy peace or to avoid harassment or litigation. In this view of the matter we are of the view that the assessee neither concealed particulars of his income nor furnished inaccurate particulars of income, which warrants levy of penalty u/s 271(1)(c) of the Act. The income finally assessed is merely an estimation of income without reference to any concealment of particulars of income. - Decided in favour of assessee
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