Contact us   Feedback   Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (5) TMI 988 - ITAT HYDERABAD

2015 (5) TMI 988 - ITAT HYDERABAD - TMI - Penalty u/s 271(1)(c) - income offered as a consequence to the detection during the course of post search - Held that:- Respectfully following the order of the Coordinate Bench of Mumbai Tribunal in the case of Mr. Kiran Shah (2014 (1) TMI 1027 - ITAT MUMBAI ) wherein held for the purpose of imposition of penalty u/s. 271(1)(c) resulting as a result of search assessments made u/s. 153A, the original return of income filed u/s. 139 cannot be considered. W .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

VIJAYARAGHAVAN, J.M. : These appeals are filed by the assessee against the order of the Ld. CIT(A)-1, Hyderabad dated 31.07.2014 for the A.Ys. 2003-04 to 2006-2007. Since common issues are involved in these appeals, the appeals are heard together and are being disposed of by single consolidated order. 2. The facts of the case in brief as appearing from the penalty order are that during the course of search, it was found that the appellant and his family members have certain undisclosed income. I .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e has been detected consequent to the search and the appellant has not filed his returns of income offering the above income originally. Since the income is offered as a consequence to the detection during the course of post search, the conditions laid down in sub-section (1)(c), Explanation-1 and 5A are satisfied and therefore the Assessing Officer treated the assessee as assessee in default for the purpose of section 271(1)(c) and levied the penalty. 3. During the course of appeal proceedings .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the returns of income filed get abated and there would not be any proceedings pending. Therefore, the Assessing Officer cannot consider the returns of income pending as on the date of search for levying of penalty. 3.1. It was further submitted by the Ld. Authorised Representative before the Ld. CIT(A) that in so far as the proceedings u/s.153A are concerned, the assessee admitted the incomes as mentioned above and the Assessing Officer accepted the incomes admitted. Therefore, there is no conc .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

he Ld. CIT(A) that he accepted for admission of additional income during the course of search and seizure operations itself. Such amount was admitted in the returns of income filed in response to notice u/s.153A of the Act. The penalty proceedings were initiated during the assessment proceedings u/s.153A of the Act though there was no concealment. In support of its contention the assessee relied on the decision of Supreme Court in the case of CIT vs Suresh Chandra Mittal reported in 251 ITR 9 an .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

accordingly, it does not alter the position even if there is no change in the income admitted in return u/s.153A and the final assessment order. The income has been detected consequent to the search and the appellant has not filed his returns of income offering the above income originally. Since the income is offered as a consequence to the detection during the course of post search, the conditions laid down in sub-section (l)(c), Explanation-l and 5A are very much applicable to the appellant an .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ders of Ld. CIT(A) and A.O. 6. We have heard both the parties and also perused the relevant material on record. We find that the solitary issue in the present appeals is squarely covered by the order of the Coordinate Bench of Mumbai Tribunal in the case of Mr. Kiran Shah vs. ACIT, Central 15 & 16, Mumbai in ITA.No.5919 to 5925/Mum/2011 dated 08.01.2014 wherein the Tribunal while allowing the appeals of the assessee held as under : 13. …. It would be pertinent to refer to the decision .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ssessment years immediately preceding the assessment year relevant to the previous year in which such search is conducted or requisition is made. Thus, the legislative intention is not to assessee escaped income as in section 147 or undisclosed income as was assessed u1s. 158BC. The first proviso to Sec. 153A makes it clear that notice u/s. 153A will be for each of such six assessment years for assessment or reassessment of total income. Second proviso to section 153A provides that such notice w .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d income u/s. 139 for the purpose of imposition of penalty u/s. 271 (1)(c). It follows that the concealment of income has to be seen with reference to additional income brought to tax over and above income returned by the assessee in response to notice issued u/s. I53A. Accordingly, for the purpose of imposition of penalty u/s.271(1)(c) resulting as a result of search assessments made u/s. 153A, the original return of income filed u/s. 139 cannot be considered. Further, in case of search initiat .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version