TMI Blog2014 (7) TMI 1218X X X X Extracts X X X X X X X X Extracts X X X X ..... MEMBER And SHRI T. S. KAPOOR, ACCOUNTANT MEMBER Assessee by :Shri Ajay Wadhwa, CA Revenue by :Shri Manoj Kumar Chopra, Sr. DR ORDER PER I. C. SUDHIR, JUDICIAL MEMBER: In all these appeals the assessee has questioned upholding of penalty imposed u/s 271(1) of the Act by the Ld. CIT(A). 2. The main contention of the Ld. AR is that when no concealment was detected by the revenue and the income declared in the return filed u/s 153A was voluntary which was accepted as such in the assessment made u/s 153A / 143(3) of the Act, there was no question of levy of penalty u/s 271(1) of the Act. He submitted further that the issue raised is fully covered in favour of the assessee in almost similar facts by the following ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 153A showing an income of ₹ 3,35,000/- including an income of ₹ 1,25,000/- from undisclosed sources for the asstt. year 2004-05, in asstt year 2005-06 it showed income of ₹ 22 lacs which included an income of ₹ 19 lac from undisclosed sources in asstt. year 2006-07 it showed an income of ₹ 18,62,746/- which included undisclosed income of ₹ 12,75,000/-. In asstt. year 2007-08 it returned income of ₹ 8,18,320/- was accepted in the assessment framed u/s 143(3) and disallowance of ₹ 15,000/- was made out of the payment made to the creditors. In all these years asstt. u/s 153A / 143(3) were framed on the income undisclosed by the assessee in its return of income filed in response to the notice iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is no evidence of the same having being earned. Penal proceedings were initiated and the AO levied penalty u/s 271(1) of the Act on the declared undisclosed income. The Ld. CIT(A) has also justified the action of the AO saying that the case of the assessee falls within the general provisions of section 271(1)(C) as well as within the Explanation 5 thereof. We find that an identical issue was raised before Delhi Bench of the Tribunal in the case of Prem Arora vs. DCIT(supra) wherein after discussing related provisions in detail, the Tribunal has come to the conclusion that for the purpose of imposition of penalty u/s 271(1)(c) as a result of search assessments made u /s 153A, original return of income filed u/s 139 cannot be considered. It ..... X X X X Extracts X X X X X X X X Extracts X X X X
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