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2018 (3) TMI 1584 - AT - Income TaxCalculating the net profit @12.68% on closing WIP - assessee has claimed to have offered to tax entire income arising from this project in AY 2008-09 when the project was claimed by the assessee to have been completed - Held that:- This matter need to be restored to the file of the AO for verification whether the assessee has offered entire income arising from this project in AY 2008-09 when the project was stated by the assessee to be completed and also to verify since when the project completion method was adopted by the assessee for computing income from this project as the project was stated to be started in 1995 and the stand adopted by the Revenue for the earlier years in accepting project completion method of earlier years. If the aforesaid contentions of the assessee are found to be correct, then additions will stand deleted. AO shall grant proper and adequate opportunity of being heard to the assessee in accordance with principles of natural justice in accordance with law. AO shall admit evidences filed by the assessee in its defence in the interest of substantial justice Penalty u/s 271(1)(c) - undisclosed being compensation from Chedda Housing - Held that:- Revenue is contending that it is only after when the assessee was cornered by revenue, the assessee came forward and made disclosure of income voluntarily being compensation from Chedda Housing which was earlier disclosed as an unsecured loan. It is very crucial to have correct facts on record and there has to be ad idem as to the findings of the authorities below so as to establish bonafide of the assessee or there need to be proper justification for arriving at contrary findings and it can not be left in the realm of speculation. It is also not on record as to under what circumstances, the said income was earned by the assessee and what made the assessee in not disclosing the said income. The assessee is claiming that the same to be an accountant mistake. This aspect also needs to be looked into to establish the bonafide of the assessee and whether the assessee is able to come out with reasonable explanations and justifications to come out of clutches of penalty provisions u/s 271(1)(c) of the 1961 Act. Thus this matter needed to be restored to the file of the AO for recording the entire factual matrix of the case and then arrive at the decision as to the leviability of penalty u/s 271(1)(c) of the 1961 Act in accordance with law. - Appeal of assessee decided for statistical purposes.
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