Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (2) TMI 1217 - AT - Income TaxPenalty levied u/s 271(1)(c) - return of income filed in response to the notice under section 153C - assessee admitted the additional income as received on sale of residential property in Jaipur and the cash component was paid towards purchase of five residential properties in Bangalore - HELD THAT:- Explanation 5A is not applicable in the present case. As the case of assessee was not covered by search action, rather a survey action was carried out. We have noted that though the assessee has not challenged the issuance of notice under section 153C. On our specific question to the assessee since the return of income filed in response to the notice under section 153C was accepted without any variance and due to the ignorance the assessee has not challenged the validity of notice under section 153C. In our considered view, the assessee is not precluded from raising objection against the validity of notice under section 153C, if the same was not valid and warranted on the facts of the case. Present proceeding are related to the validity of penalty levied under section 271(1)(c). As noted above, the additional income offered by assessee in his return of income has been accepted by Assessing Officer. The fact of “concealment of income” and “furnishing inaccurate particulars of income” can be established with reference to the income declared in the return of income. In the present case, the income declared in the return of income has been accepted; therefore, it cannot be the case of “concealment” or “furnishing inaccurate particulars” of income. In our view there is no occasion for the assessee to evade the tax as the assessee offered the additional income declared during the survey action while filing the return in response to the notice under section 153C. When the income declared in the return of income was accepted without any variance. The assessee has neither concealed the income nor furnished any inaccurate particulars of income while filing return of income - Appeal of the assessee is allowed.
|