2023 (5) TMI 1109 - AT - Income Tax

Penalty order u/s. 271(1)(c) - assessee has not disclosed the capital gain earned on account of the JDA - HELD THAT:- Admittedly the assessee has not disclosed the capital gain arose to him on account of the JDA in ROI/assessment proceedings. In fact as rightly pointed out by the Ld.DR that the assessee has not disclosed the capital gain in any of the two assessment years.

Disclosure of the capital gain at the appellate stage - Having failed to disclose the capital gain in the assessment year and filing the return of income disclosing capital gain and paying the due taxes, CIT(A) had issued the enhancement notice to assessee. The additions were admitted by the assessee and thereafter the ld.CIT(A) had made the addition in the hands of the assessee. The disclosure of the capital gain at the appellate stage, was thus not voluntary as the said admission of capital gain only happened after receipt of the enhancement notice from the office of the CIT(A). Thus, the assessee had concealed the capital gain income while filing the ROI & before the AO.

Order passed by the Ld. CIT(A) is in accordance with law as there was lack of bona fideness and voluntaryness in declaring the capital gain in the return of income and thereafter also. Decided against assessee.