Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (6) TMI 927 - AT - Income TaxLevy of penalty U/s 271(1)(c) - additions inter alia on account of undisclosed sale consideration received in cash - HELD THAT:- As regards the non disclosure of the sale consideration received in cash, we find that the assessee has admitted the non disclosure of the same in the return of the income and it was detected by the AO only during the course of assessment proceedings and inquiry conducted by the AO. Therefore, the addition made by the AO on account of sale consideration received in cash which is subject matter of the appeal before us is clearly a case of concealment of particulars of income. Hence, at the time of recording the satisfaction the AO has clearly set out of the charges of major disallowance in respect of claim of deduction U/s 54B &54F which falls in the category of furnishing of inaccurate particulars of income. So far as the satisfaction recorded by the AO in view of Section 271(1B) once the AO has clearly recorded the satisfaction in the assessment order the same shall be deemed to constitute a satisfaction for initiation of penalty proceeding under clause (c) of Section 271(1). Hence, so far as the satisfaction of record by the AO in the assessment order there is no infirmity. As regards the certainty of charge since the penalty was initiated in respect of all three additions made by the AO out of which some additions fall in the category of furnishing of inaccurate particulars of income and other one which is the subject matter of the proceeding before us falls in the category of concealment of particulars of income. Therefore, the question of definite charge being furnishing of inaccurate particulars of income or concealment of particulars of income does not arise. It is a case of default on the part of the assessee falling under both limbs. In the penalty order U/s 271(1)(c) the AO has clearly made out in a case in para 3 by holding that the non disclosure of sale consideration of ₹ 59,04,000/- received in cash is clearly concealment on the part of the assessee. The AO has levied the penalty in respect of all additions on which both the limbs were attracted then we do not see any error or illegality in the order passed by the AO U/s 271(1)(c). The decision relied upon the ld. AR will not help the case of the assessee. As regards the alternate plea of the assessee that is a bonafide mistake, we find that the sale consideration in cash cannot be detected from the sale documents until and unless the assessee who was knowing a true facts disclosed the same to his tax consultant for the purpose of computing the capital gain. It is not the case of the assessee that the assessee has brought this fact to the knowledge of the tax consultant therefore, simply handing over the sale deed to the tax consultant would not discharge the assessee of his obligation to disclose the true and correct fact for the purpose of filing the return of income. Accordingly, we do not find any merit or substance in this plea of the ld. AR. Hence, the impugned order of the ld. CIT(A) sustaining the penalty levied U/s 271(1)(c) is upheld. Disallowance made U/s 54B &54F - HELD THAT:- We find once the addition itself was detected and the order of this Tribunal was confirmed by the Hon’ble High Court then there is no need to file the appeal against the deletion of penalty by the ld. CIT(A) as in case the Revenue succeed before the Hon’ble Supreme Court in the quantum proceedings the penalty proceeding can again be initiated accordingly, the appeal of the Revenue’s is dismissed.
|