TMI Blog2016 (12) TMI 1339X X X X Extracts X X X X X X X X Extracts X X X X ..... s mentioned in the affidavit produced before the CIT(A). As per the Hon'ble Supreme Court in case of CIT Vs. Suresh Chandra Mittal (2001 (6) TMI 63 - SUPREME Court ) wherein it is held that though the assessee surrendered additional income by way of revised returns after persistent queries by AO once the revised returns have been regularized by Revenue the explanation of the assessee that he has declared additional income to buy peace and to come out of vexed litigation could be treated as bona fide and penalty under Section 271(1)(c) was not leviable. Thus, the act of the assessee cannot be termed as inaccurate furnishing of income or concealment of income. Therefore, the CIT(A) as well as the Assessing Officer should have taken this aspec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of 21,35,400/- and ₹ 18,75,000/- respectively. Notice u/s. 142(1) of the Income Tax Act, 1961 was issued on 15.04.2010, therein vide attached detailed questionnaire has asked to furnish computation of long term/short term capital gain/ loss with evidences of investment / sale etc. The assessee filed reply on 06.12.2010. The Assessee submitted that after the separation from the Partnership Business w.e.f. 30.06.2007 date coming within the impugned assessment year ending on 31.3.2008, the individual commenced its operation on and after 30.06.2007 onwards as submitted during the case proceeding dt. 02/11/2010. The assessee filed its first return of income in the Individual Capacity on dt. 16.09.2008 in accordance with the Audited Financ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... naire and or order sheet entry, the assessee voluntarily realized the mistake on dt. 06.12.2010 whereby the amount for the capital gain was being requisitioned as a question No.VII, IX of Questionnaire issued along with notice u/s 142(1) dated 15.04.2010 was not case specific, but a 'General Questionnaire . This is the solitary questionnaire issued before voluntarily revising the return of income by assesse on dt. 06.12.2010. While preparing the individual Statement of Affairs as on 31.3.2008 it was found that the assessee has received ₹ 21,35,400/- on 12.7.2007 from Boutique International Pvt. Ltd. and ₹ 18,75,000/- on 12.7.2007 from Boutique Clothing Pvt. Ltd, which were received from sale of shares of above said compa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Personal Statement of Affairs along with Income Tax Return. However while preparing personal Balance Sheet for scrutiny proceedings, the assessee found that the above said capital gain on shares was pending disclosure 'without any intention to conceal' the income as the assessee has already filed return showing income of ₹ 1,32,24,171/- and 'paid tax amounting to ₹ 45,69,390/-. Return Acknowledgement, Computation of Income Audit Report u/s 44AB and Audited Balance Sheet as on 31/3/2008. The Ld. AR further submitted that The assessee had given all particulars of his income and had disclosed all facts to the AO during the assessment proceedings. It is not the case set up by the AO that in reply to a query from assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d appreciation of Sec. 271(l)(c) Explanation 5(2). The Financial Statements having been extracted from the 'Material Particulars' and 'Material On Record' by the professional and there being appreciation and examination of the same by the AO once having recorded a Finding Of Fact (30.12.2010) qua the calling of the replies, having been submitted them regularly, along with the production of books of accounts and the supporting material would go to sufficiently show the Intention being for making the complete details availability to the AO since in the totality there are merely Non Business Usage disallowances for expenses and by any stretch of imagination on the Prima Facie Examination of the totality of the case it is eviden ..... X X X X Extracts X X X X X X X X Extracts X X X X
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