GST Helpdesk   Subscription   Demo   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
What's New Case Laws Highlights Articles News Forum Short Notes Statutory TMI SMS More ...
Extracts
Home List
← Previous Next →

2016 (4) TMI 859 - ITAT CHENNAI

2016 (4) TMI 859 - ITAT CHENNAI - TMI - Penalty levied under section 271(1)(c) - Held that:- It is a clear case of concealment of income. The assessee has admitted an income of ₹.1,46,232/- in the return filed on 15.09.2009 for the assessment year 2007-08. But the profit and loss account shows the income at ₹.2,17,794/-. In view of the above, the submission of the ld. Counsel for the assessee that the assessee has filed the return in time for the assessment year 2007-08 and no penalt .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

question of filing the return of income in time or not does not arise and moreover, penalty under section 271(1)(c) of the Act was levied by the Assessing Officer for a clear case of concealment of income and furnishing of inaccurate particulars of income. Under the above facts and circumstances, the penalty levied under section 271(1)(c) and restricted to the extent of 100% by the ld. CIT(A) for the assessment year 2007-08 stands confirmed - Decided against assessee. - I.T.A.Nos.545 and 546/Md .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ncome Tax Act, 1961 [ Act in short]. The only effective ground raised in both the appeals of the assessee is with regard to confirmation of penalty levied under section 271(1)(c) of the Act. 2. Brief facts of the case are that the assessee AOP has filed its return of income for the assessment year 2006-07 belatedly on 15.09.2009 admitting a total income of ₹.1,46,232/-. Since this is a survey related case, a notice under section 148 was issued on 15.12.2009, in response to which, Shri S.V. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

aging Director. During the course of survey, some diaries containing noting by Shri S.V. Natarajan for having let out JCB on hire and vouchers relating to receipts of JCB hire charges for the months of November 2006 and December 2006, an expenditure statement for the respective months, etc. were inter alia found and impounded. A sworn statement was also recorded from Shri S. V. Natarajan based on the findings in the above dairies and documents. In the statement, Shri S.V. Natarajan had admitted .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

.2,50,000/- per annum as his share of income. However, Shri S.V. Natarajan did not file his 'Individual' return. Instead, Shri S.V. Natarajan has filed a return in the status of AOP in the name and style of ' Om Muruga Earth Movers'. 4. During the course of assessment proceedings, the assessee AOP furnished a statement of profit & loss account, Balance Sheet and submitted a letter requesting to consider its claim for depreciation and bank interest and other additional expense .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ed depreciation at the rate of 30%. In this regard, the assessee has filed the original purchase bill in respect of JCB in the name of one Shri Ramasamy, one of the AOPs. The assessee has also furnished copy of Corporation Bank account statement in support of its claim for payment of interest towards the loan obtained for the purchase of JCB. Considering the above and also that the payment of interest towards bank loan and the claim of depreciation was not taken into account at the time of surve .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ssee on 31.12.2010. The assessee has not filed any reply/ submission to the penalty notice. However, the assessee appeared for the hearing on 13.06.2011 and simply requested to drop the penalty proceedings without offering any explanation or written submission and the assessee was also asked to do so. Inspite of the above, the assessee has not furnished any explanation/submission. Therefore, the Assessing Officer levied penalty @ 200% of tax sought to be evaded. Similarly, for the assessment yea .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

mitted that the Assessing Officer has determined the business income on the basis of estimates and therefore, penalty under section 271(1)(c) of the Act is not warranted. 9. On the other hand, the ld. DR strongly supported the order passed by the ld. CIT(A). 10. We have heard both sides, perused the materials on record and gone through the orders of authorities below. In this case, the assessee M/s. Om Muruga Earth Movers was neither a registered firm nor return of income has been filed voluntar .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

s conducted in the business premises of M/s. Raj & Co. on 12.01.2007 in which Shri S.V. Natarajan [one of the assessee AOPs] is the Managing Director, some diaries containing noting by Shri S.V. Natarajan for having let out the JCB on hire and vouchers relating to receipts of JCB hire charges for the months of November 2006 and December 2006, an expenditure statement for the respective months, etc. were inter alia found and impounded. A sworn statement was also recorded from Shri S. V. Natar .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

luntarily. When the assessee was asked to file the return in his individual capacity, he has not filed the return of income instead, he filed the return in the status of AOP on 15.09.2009 for the assessment years 2006-07 and 2007-08 admitting income of ₹.1,46,232/-, whereas, in the profit and loss account filed at the time of scrutiny, the income was offered at ₹.1,67,396/- for the assessment year 2006-07 and ₹ 2,17,794/- for the assessment year 2007- 08. Even after survey, the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

.w.s. 271 of the Act was served on the assessee on 31.12.2010. The assessee has not filed any reply to the penalty notice, but appeared on 13.06.2011 and simply requested to drop the penalty proceedings, without offering any explanation. Accordingly, the Assessing Officer levied penalty under section 271(1)(c) of the Act @ 200% and on appeal, the ld. CIT(A) restricted the penalty @ 100%. 12. In this case, though the assessee was engaged in the JCB hire business, no return of income was filed unt .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

rajan was asked to file return in his individual capacity. However, he has not filed the return, but filed the return in the status of AOP on 15.09.2009. If the survey under section 133A of the Act was not conducted, the business of the assessee and his income would not have come into light. In the return filed on 15.09.2009 for both the assessment years, the assessee has admitted income of ₹.1,46,232/- but at the time of scrutiny, in the profit and loss account, the assessee has offered 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

determined on the basis of estimates, no penalty can be levied is not acceptable. Because, first of all, the assessee has not discharged its duty to file its return of income within the due date for filing under Income Tax Act and secondly, based on the invoices found for the months of November and December, 2006 and corresponding expenditure impounded during the course of survey, a net income of ₹.7,50,000/- per annum was worked out from the JCB business. We are not in a position to hold .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ope for holding that the assessee has concealed income. Under the above facts and circumstances, we find that the ld. CIT(A) has rightly restricted the penalty under section 271(1)(c) of the Act at 100% against 200% levied by the Assessing Officer. Thus, we find no infirmity in the order passed by the ld. CIT(A). Accordingly, the appeal filed by the assessee for the assessment year 2006-07 is dismissed. 14. For the assessment year 2007-08, the ld. Counsel for the assessee has submitted that the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

section 148 of the Act was issued on 15.12.2009. Shri S.V. Natarajan, one of the AOPs appeared on 18.01.2010 and requested to treat the return filed on 15.09.2009 as proper compliance to the notice issued under section 148 of the Act. Subsequently, a notice under section 143(2) of the Act was issued on 14.10.2010. In the return of income, the assessee has admitted an income of ₹.1,46,232/-, whereas, on perusal of the Profit and Loss account, at the time of scrutiny, the Assessing Officer .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

Advanced Search


Latest Notifications:

    Dated      Category

20-7-2017 Cus (NT)

20-7-2017 GST CESS Rate

19-7-2017 IT

19-7-2017 IT

18-7-2017 IT

18-7-2017 CE (NT)

18-7-2017 CE

18-7-2017 GST CESS Rate

15-7-2017 Kerala SGST

14-7-2017 Andhra Pradesh SGST

14-7-2017 Cus (NT)

14-7-2017 Cus

13-7-2017 Co. Law

13-7-2017 Co. Law

13-7-2017 ADD

13-7-2017 ADD

12-7-2017 Jammu & Kashmir SGST

12-7-2017 Gujarat SGST

12-7-2017 Gujarat SGST

12-7-2017 CGST Rate

More Notifications


Latest Circulars:

20-7-2017 Goods and Services Tax

19-7-2017 Goods and Services Tax

19-7-2017 Income Tax

18-7-2017 Customs

17-7-2017 Customs

14-7-2017 Income Tax

13-7-2017 Central Excise

13-7-2017 Customs

13-7-2017 Central Excise

13-7-2017 Customs

More Circulars



|| 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