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2020 (3) TMI 1171 - AT - Income TaxPenalty levied u/s.271(1)(c) - concealment of income - disclosure of on- money income was made only due to the survey action by the Department and the on-money income was not accounted for in the regular books of account of the assessee on the date of survey - HELD THAT:- Assessee had offered the amount as additional business income pursuant to survey operation for the ongoing year, which was duly incorporated in the books of accounts and in the regular return of income with taxes duly paid. Since the Assessing Officer was of the view that the “unaccounted income” of ₹ 3.8 crores was offered to tax by the assessee. As the same came to the surface only because of survey and that had there been no survey, then that amount could not have been brought to tax. Therefore, it was held that the ‘onmoney’ received was unaccounted income which was admitted by the assessee when it was confronted with the ‘diary’ during the survey. However, we are of the view that the conclusion of the AO that amount was not finding mention in the regular books of accounts is over-sweeping over statement, because the fact remains that the books of accounts were not “closed”, then as the year was yet not over. It was not the case of the Revenue that the books were completed, accounts were audited and returns were filed and thereafter only the ‘unaccounted’ income of ₹ 3.8 crores came to the surface because of the survey by the Department. This particular facts, according to us, is the inherent disability/challenge in any disclosure if it pertains to the “ongoing financial year”. The year in the case of the assessee being the first year of operation, it cannot even be implied that that the amount pertained to earlier year(s) of its business. See R UMEDBHAI JEWELLERS PVT. LTD [2016 (9) TMI 9 - GUJARAT HIGH COURT] - Decided against revenue.
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