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2021 (2) TMI 471 - AT - Income TaxPenalty u/s 271(1)(c) - assessee offered additional income during the search and has paid taxes on the same - Assessment order passed pursuant to notice under section 153C - HELD THAT:- No addition has been made by the Ld.AO on such income offered by assessee and has been accepted by the revenue. We note that, while passing the assessment order the Ld.AO recorded satisfaction in respect of concealment towards the additional income offered by assessee based on the seized material. The notice issued under section 274 of the Act is for both the limbs being filing of inaccurate particulars of income as well as concealment. On a careful perusal of the penalty order passed by the Ld.AO, it is clear that all throughout the submissions made by assessee was in respect of concealment of income regarding the additional sale consideration of land, the Ld.AO levies penalty for furnishing inaccurate particulars of sale consideration of the land. This in our opinion is a clear nonapplication of mind by the Ld.AO. Penalty was initiated by the Ld.AO therein in assessment order passed pursuant to notice under section 153C of the Act, wherein assessee therein declared additional income in the returns filed in response to notice under section 153C of the Act. As decided in Rajkumar Gulab Badgujar [2019 (9) TMI 360 - SC ORDER] where no addition to the income declared by the searched person in the return filed pursuant to search is made it is not open to the revenue to levy penalty by virtue of Explanation 5 to section 271 - Decided in favour of assessee.
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