TMI Blog2017 (3) TMI 900X X X X Extracts X X X X X X X X Extracts X X X X ..... td., (2013 (11) TMI 14 - SUPREME COURT ) has held that voluntary disclosure itself does not release the assessee from penal consequences. In the peculiar fact of the present case, the socalled voluntary disclosure was only after the Assessing Officer initiated proceedings under Section 142 of the Act. Thus, it was not a voluntary disclosure. In fact, the Assessment Order dated 24th December, 2009 under Section 143(3) of the Act also records the fact of verification by the Assessing Officer, leading to a finding that the appellant-assessee had debited foreign exchange loss to arrive its non-tonnage income. This order was accepted and no grievance in respect of the same being found by the Assessing Officer, was made by the appellant-assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pter XIIG of the Act to the extent its income is earned from vessels, satisfying/ qualifying the requirements thereof (tonnage income). So far as the income from other vessels i.e. non-qualifying vessels (non-tonnage income) is concerned, the same is subjected to tax under the head Profit Gain from its Business or Profession . Thus, classifying its income as tonnage business and non-tonnage business. During the subject Assessment Year, the appellant-assessee had suffered foreign exchange loss in respect of its tonnage business which is taxable under Chapter XIIG of the Act. However, the above foreign exchange loss of ₹ 9.37 lakhs was debited to compute its non-tonnage income while bringing it to tax under Profit Gain from busines ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nalty of ₹ 3.09 lakhs being 100% tax sought to be evaded by debiting foreign exchange loss of ₹ 9.37 lakhs to determine its non-tonnage income. 6 Being aggrieved, the appellant-assessee carried the above issue of penalty in appeal to the Commissioner of Income Tax (Appeals) [CIT(A)]. By order dated 15th July, 2012, the CIT(A) dismissed the assessee's appeal. This, by holding that there was a deliberate attempt on the part of the assessee to furnish inaccurate particulars so as to reduce its taxable income. The Explanation of mistake offered for the same by the appellant was not found to be satisfactory even by the CIT(A). 7 Being aggrieved, the appellant-assessee filed a second appeal to the Tribunal against imposition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al proceedings, has been ignored by all the authorities including the Tribunal while passing the impugned order. It is submitted that the above fact itself would justify dropping of any penal proceedings against appellant-assessee. It was also submitted before us that debiting of the foreign exchange loss to arrive its non-tonnage income, was a mistake and no penalty be imposed for the mistake committed. Reliance was placed upon the Apex Court's decision in Price Waterhouse Coopers (P) Ltd., v/s. CIT 348 ITR 306 to contend that mistakes made by an assessee cannot be the basis for imposition of penalty. In the above view, it is submitted that the appeal be admitted. 9 From the record it is clear that the notice under Sections 142(1) a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... absolved from penalty. In the peculiar fact of the present case, the socalled voluntary disclosure was only after the Assessing Officer initiated proceedings under Section 142 of the Act. Thus, it was not a voluntary disclosure. In fact, the Assessment Order dated 24th December, 2009 under Section 143(3) of the Act also records the fact of verification by the Assessing Officer, leading to a finding that the appellant-assessee had debited foreign exchange loss to arrive its non-tonnage income. This order was accepted and no grievance in respect of the same being found by the Assessing Officer, was made by the appellant-assessee. It is only in penalty proceedings that this issue is raised for the first time. Further, the appellant-assessee b ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
