Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2021 (10) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (10) TMI 423 - HC - Income TaxPenalty levied u/s 271(1)(c) - net undisclosed income received as “on money” which was unearthed based on diary found in survey - addition as per Investigation wing during survey proceedings and also admitted by one of the partners in the statement recorded u/s. 131 (1A) and the said “on money” income was not accounted for in the regular books of account of the assessee on the date of survey? - HELD THAT:- As survey had taken place on 09.01.2013 as a part of search operation of the entire group and when it chose to disclose additional ₹ 20 Cr., ₹ 3.80 Cr. came to be attributable to the respondent firm. The return was filed under Section 139 of the Act by the respondent for the Assessment Year 20132014 on 29.09.2013, which is after about eight months of the survey which was conducted. The books of account also were not closed and it was not a case of any revised return being filed by the respondent Assessee. In such circumstances, Assessing Officer also had not added any other income for the amount of ₹ 3.80 Cr. had already been declared in the return itself. Both the authorities concurrently have correctly held following the decision of PRINCIPAL COMMISSIONER OF INCOME TAX-3 vs. R UMEDBHAI JEWELLERS PVT. LTD [2016 (9) TMI 9 - GUJARAT HIGH COURT] that no penalty can be levied in such circumstances. Adverting to the facts of the present appeal, return was filed after about eight (8) months of conducting of survey and books of accounts were not closed also - neither it is a case of filing of revised return disclosing undisclosed income nor the case of books of accounts having been closed. Therefore, as rightly held by both the CIT(Appeals) and ITAT, no penalty can be imposed. - Decided in favour of assessee.
|