TMI Blog2015 (7) TMI 723X X X X Extracts X X X X X X X X Extracts X X X X ..... er, it was submitted that it was only the mistake of the Chartered Accountant and not of the assessee in making proper disclosure. Later the assessee accepted for the addition to purchase peace and to avoid prolonged litigation. In our opinion, this contention of the assessee is totally misconceived. It is the duty of the assessee to disclose all income truly and fully while filing the return of income. The assessee cannot shift his responsibility to his Chartered Accountant. Further, the assessee stated it was ill advised by the Chartered Accountant without mentioning the name of the Chartered Accountant. It is not brought on record what advice was given by the Chartered Accountant on this issue. In our opinion, the assessee has concealed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome for the assessment year 2005-06 admitting a total income of E2,10,000/-. The Assessing Officer made an addition of E7,39,800/- towards unexplained bank deposits. Later penalty proceedings u/s.271(1)(c) towards these additions were initiated. In the course of penalty proceedings, the assessee has not offered any explanation regarding source of bank deposits inspite of giving adequate opportunity of hearing to the assessee. The penalty of E2,46,284/- was levied u/s.271(1)(c) of the Act. Aggrieved, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals). 2.1 The Commissioner of Income Tax (Appeals) deleted the penalty by placing reliance on the judgment of the Supreme Court in the case of CIT vs. Suresh Chandr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upreme Court in the case of Mak Data (Pv) Ltd. vs. CIT 358 ITR 593 wherein it was held that the assessee had only stated that it had surrendered the additional sum of ₹ 40,74,000 to avoid litigation, buy peace and to channelize the energy and resources towards productive work and to make amicable settlement with the Income-tax Department. The statute did not recognize those types of defences under Explanation 1 to section 271(1)(c) of the Act. The surrender of income in this case was not voluntary in the sense that the offer of surrender was made in view of detection by the Assessing Officer in the search conducted in the sister concern of the assessee. The survey was conducted more than 10 months before the assessee filed its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... later penalty u/s.271(1)(c) was levied at E3,69,947/-. Since facts in this year is similar to assessment year 2005-06, as discussed in the earlier assessment year 2005-2006, we are inclined to reverse the order of the Commissioner of Income Tax (Appeals) and restore the order of the Assessing Officer in levy of penalty u/s.271(1)(c) of the Act. In result, the appeal of the Revenue in ITA No.957/Mds/2013 is allowed. 5. ITA No.958/Mds/2008, assessment year: 2007-2008. The facts of the case are that the assessee filed her return of income on 31.03.2008 disclosing a total income of E6,89,650/-. The assessment was completed u/s.143(3) on 07.12.2009 assessing the total income at E47,89,652/-. The Assessing Officer made an addition of E40 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Revenue is in appeal before us. 6. We have heard both the parties and perused the material on record. In our opinion, how the amount of E40,00,000/- has been considered in the hands of ex-husband is not on record. In our opinion, it is appropriate to remit the issue back to the Commissioner of Income Tax (Appeals) to give reasons on what basis he came to the conclusion that it was shown in the hands of ex-husband. Hence, this issue is remitted back to the file of the Commissioner of Income Tax (Appeals) for fresh consideration. In the result, the appeal of the Revenue is partly allowed for statistical purposes. ITA No.959/Mds/2013, assessment year 2007-2008. 7. This appeal by the Revenue is against the deletion of penalty in r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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