TMI Blog2015 (7) TMI 400X X X X Extracts X X X X X X X X Extracts X X X X ..... ental income from the second flat, only when she was cornered or enquired by the AO. Even if the revised return is held to be invalid, then also the revised computation filed with the revised return declaring such an income is liable to be held as voluntarily, and therefore, such an offer of income during the course of the assessment proceedings cannot lead to a conclusion that the assessee is liable for penalty u/s 271(1)(c). The finding of the CIT(A) that the assessee had filed initial return with a view to conceal the income and the revised return was out of compulsion cannot be held to be correct because no such compulsion is borne out from the records, that the assessee came forward for offering the income only when the AO had carr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, the Assessing Officer (AO) held that such a return of income cannot be said to be revised return within the meaning of section 139(5), because the same should have been filed at any time before the expiry of one year from the end of the relevant assessment year or before the completion of assessment, whichever is earlier. Here in this case, the revised return has been filed after the expiry of the said period. Further, if the assessee s case would not have been selected for scrutiny, then the rental income of ₹ 1,61,880 would have escaped from taxation. Accordingly, he initiated the penalty proceedings u/s 271(1)(c). 3. In the penalty proceedings, the assessee could not file any explanation and accordingly, the AO levied the pen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring Account No.005210000107744. The income with regard to the rent was reflected in the bank statement and in no way the assessee could have concealed the same. The assessee has also received interest from HDFC Bank and the same has been declared. We have to submit that since the error was inadvertent, the assessee has not filed inaccurate particulars of income within the meaning of section 271(1)(c) and as such, we shall request your goodself to kindly cancel the penalty. 4.1 The learned CIT(A) noted that in the earlier year, the assessee had disclosed the rental income from the said property but for the present assessment year, the same has not been included in the return of income. Since the revised return filed by the assessee was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed. The error was rectified by the assessee suo moto without there being any specific notice issued by the AO in this regard. Therefore, no penalty for furnishing of inaccurate particulars should be levied. Further, in support of his contention, he has relied upon the decision of ITAT Mumbai Benches in the case of Ms. Prema Gopal Rao v. DCIT, ITA No.8653/Mum/2011, order dated 07.01.2015. 6. On the other hand, the learned Departmental Representative, strongly relied upon the order of the CIT(A) and submitted that the revised return or revised computation cannot be said to be voluntarily, because the same was made only when assessee s case was selected for scrutiny. Thus, penalty has rightly been confirmed by the CIT(A). 7. We have hea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise purchase sales made during the year. 10. Party-wise purchase sales exceeds ₹ 50,000/-. 11. Details of expenses debited to the P L a/c. exceeds ₹ 25,000/-. 12. Qualitative and quantitative details of op. and closing stock. 13. Give proof for the addition made to the fixed assets. 7.1 From the perusal of the above notice, it can be seen that nothing has been mentioned or asked from the assessee regarding rental income of the assessee, nor any details of flats owned by the assessee. Later on, when the assessee had filed a revised return on 06.11.2010 including the rental income of ₹ 1,61,880, there was no specific query or enquiry by the AO prior to this date. Neither from the assessment order nor from ..... X X X X Extracts X X X X X X X X Extracts X X X X
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