TMI Blog2014 (7) TMI 340X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee not offered any satisfactory explanation about the forex loss claim. The decision in MAK Data P. Ltd. Versus Commissioner of Income Tax-II [2013 (11) TMI 14 - SUPREME COURT] followed - It is the statutory duty of the assessee to record all its transactions in the books of account, to explain the source of payments made by it and to declare its true income in the return of income filed by it from year to year - The AO had recorded a categorical finding that he was satisfied that the assessee had concealed the true particulars of income and was liable for penalty proceedings u/s 271 of the Act – Decided against Assessee. - ITA No. 6160/Mum/2012 - - - Dated:- 18-6-2014 - Sh. I. P. Bansal And Rajendra,JJ. For the Peti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that assessee had wrongly claimed the expenditure incurred on the Vessels in the Tonnage Scheme under the head Non-Tonnage Scheme. He disallowed the said amount and added it to the total income of the assessee. He also initiated penalty proceedings u/s. 271(1)(c) for filing inaccurate particulars of income and concealment of income. He directed the assessee to file reply as to why penalty u/s. 271(1)(c) of the Act should not be levied. After considering the letter of the assessee dated 24. 06. 2010, he held that assessee had debited ₹ 9. 37 lakhs as foreign exchange loss from Non-Tonnage Income, that on verification it was found that forex loss was only for the operations carried out in respect of Tonnage Vessels, that assessee had wr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he AO, FAA dismissed the appeal filed by the assessee-company. 5. Before us, AR stated that because of genuine and inadvertent mistake, assessee had made claim of forex loss, that addition made by the AO was never contested, that assessee had voluntarily offered the disallowance, that everything was disclosed to the AO, that after the mistake was noticed by the assessee return for the subsequent year was revised, that assessee could not revise the return for the year under appeal as the time limit had lapsed. He relied upon the judgment delivered by the Hon ble Supreme Court in the case of Price Water House Pvt. Ltd. (348 ITR 306). He also referred to the order of H Bench of ITAT, Mumbai of Harshad B. Desai(ITA No. 8031/ M/2010-AY 2005-0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inding that the assessee not offered any satisfactory explanation about the forex loss claim. Now, we would like to discuss the cases relied upon by the assessee. In the matter of Price Water House Pvt. Ltd. (supra)in the statement it was indicated that the provision towards payment of gratuity was not allowable, but it claimed a deduction thereon in its return of income. Considering the peculiar and somewhat unique facts of the case, Hon ble SC held that the tax audit report was filed along with the return and that it unequivocally stated that the provision for payment was not allowable under section 40A(7) of the Act, that it indicated that the assessee made a computation error in its return of income, that the contents of the tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gent and reliable evidence. When the initial onus placed by the Explanation has been discharged by him, the onus shifts to the Department to show that the amount in question constituted income and not otherwise. Voluntary disclosure does not release the assessee from the mischief of penal proceedings. The law does not provide that when an assessee makes a voluntary disclosure of his concealed income, he has to be absolved from penalty. The Assessing Officer should not be carried away by the plea of the assessee such as voluntary disclosure , buy peace , avoid litigation , amicable settlement , to explain away its conduct. The question is whether the assessee has offered any explanation for concealment of particulars of income or furn ..... X X X X Extracts X X X X X X X X Extracts X X X X
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