TMI Blog2015 (9) TMI 1517X X X X Extracts X X X X X X X X Extracts X X X X ..... t in the year under appeal. The assessee has not proved, during the assessment and appellate proceedings, that the income had not accrued to it-even after receiving the OC and CC. It had to produce documentary evidence that even after getting the certificates the projects remained incomplete and it had to incur substantial expenditure for completing them. We do not find any such exercise was done by it. Therefore, if the AO and the FAA held that the assessee had completed the projects in the year under appeal and had not offered the corresponding income in the year in which it should have been offered, then they were not unjustified. While deciding the concealment penalty cases what is to be considered is the explanation filed by the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nation then given before the ld.CIT(A) to the effect that the filing of Appeal before him was considerably delayed on account of the death of the Accountant as the said accountant was in exclusive employment in the Appellant' for a long period of 35 years and also that the Appellant is in a position to produce the copy of the said accountant's death certificate . 2.On the facts and in the circumstances of the case and in law, the ld. Commissioner of Income tax(Appeals) erred in confirming the order u/s. 271(1)(c) on merits levying a penalty of ₹ 10,87,011/- in spite of the valid submissions made by the appellant on the issue. 3. Your appellant craves leave to add, alter, modify or vary any grounds of appeal. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idering the submissions of the assessee, the AO held that the assessee was following PCM, that the profit earned out of its activities was liable for taxation as per the system followed by it, that it used to reflect year wise figure of WIP in the statement of accounts of each AY., that the correct profit was arrived at only after proceedings were initiated u/s.147 of the Act. Invoking the provisions of section 271(1)(c)Expl.4(a)of the Act, he levied a penalty of ₹ 10.87 lakhs for concealing the income and furnishing inaccurate particulars. 3. Penalty order was challenged before the FAA. In the penalty proceedings the assessee stated that there was delay in filing appeal, that same was attributable to the death of the Accountant, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee was required to offer income in respect of such projects in the AY. under consideration, that it was aware that the Municipal authorities had issued completion certificate(CC)in respect of those properties, that it was also aware that purchasers had taken possession of the flats, that there was no reason for the assessee to claim that projects were incomplete, that WIP details showed that after 31.03.2002 the assessee incurred little expenses, that details of expenses incurred after that date did not support the claim of the assessee that without incurring such expenses the projects could not have been said to have been completed, that it had in its return claimed that the project were incomplete, that it had filed inaccurate particula ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee had not disputed that the OC and the CC were issued by the municipal authorities with regard to the projects completed by it, that it was aware that the tenants had occupied the flats. In spite of these facts, it was claiming that work was going on, i.e. the projects were incomplete and that the income was not taxable in that year. Each accounting year is a different unit and income arising, accruing or received in a particular year has to be offered for taxation in that particular year unless and unless there exits some reasonable cause for deferring the same to other year/(s). In the case before us, the assessee has not proved, during the assessment and appellate proceedings, that the income had not accrued to it-even after receiving t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ound to be incorrect or inaccurate, that the case of the AO was that submitting an incorrect claim in law amounted in furnishing inaccurate particulars, that the interpretation adopted by the AO was not as per law. The Hon ble court had held that making an incorrect claim in law did not tantamount to furnishing of inaccurate particulars In the case before us, the facts are totally different-the survey proceedings, as stated earlier, brought certain facts and it was found that the assessee had not offered the income that was to be offered for the year under appeal. Therefore, in our opinion, the case relied upon by the assessee is of no help. In case of Girish Devchand Rajani (supra), it was found that the assessee had revised the return aft ..... X X X X Extracts X X X X X X X X Extracts X X X X
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