TMI Blog2017 (5) TMI 1105X X X X Extracts X X X X X X X X Extracts X X X X ..... rn of income and offer for taxation, neither any mention has been made nowhere in the return of income or accounts explaining the return. Only the AO has noticed this mistake committed by the assessee in the return of income. AO asked the assessee vide his Order sheet entry dated 10.8.2009 and assessee filed its reply to the same vide his letter dated 31.8.2009 by stating that we have no objection if the assessment for the financial year 2006-07 is made considering the taxable profit at ₹ 30 lacs (surrendered during survey) plus average taxable profit for the last two preceding financial years. As per the penalty order the assessee has written a letter dated 13.3.2007 offering the surrender amount of ₹ 30 lacs on account of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t had surrendered ₹ 30,00,000/- under pressure during the survey. 4. On the facts and in the circumstances of the case, the Ld. CIT(A) erred in passing the order without considering the order passed by the AO. 5. On the facts and in the circumstances of the case, the appellant craves leave to add, allow or amend any all the ground of appeal before or during the course of hearing of the appeal. 2. The facts in brief are that the Assessee filed return of income on 23.10.2007 declaring total income of ₹ 13,98,780/-. The return was processed u/s. 143(1) of the I.T. Act, 1961 (hereinafter referred as the Act). The case was selected under compulsory scrutiny and Survey u/s. 133A of the Act was carried out on the business prem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of accounts and the assessee has offered ₹ 30 lacs only to buy the peace. During the Survey assessee offered that we have no objection if assessment for the financial years is made by considering the taxable profit of ₹ 30 lacs which was surrendered during the survey proceedings plus average taxable profit of the last two preceding years, subject to penalty u/s. 271(1) of the Act read with Explanation 4 or under any section of the Income Tax Act would be initiated against the assessee. 2.2 After considering the explanation given by the assessee and the documentary evidences as mentioned above, the AO has completed the assessment by adding the income from business and profession at average of 2 preceding years i.e. ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he addition of ₹ 45,76,654/- vide order dated 30.3.2012 passed u/s. 271(1) of the Act. 5. Aggrieved by the penalty order, assessee filed appeal before the Ld. First Appellate Authority who vide his impugned order dated 18.11.2013 allowed the appeal filed by the Assessee by deleting the penalty of ₹ 14,64,400/- imposed by the AO by holding that the penalty in dispute is not leviable merely for not including the surrendered income in the return of income filed subsequently by the assessee. Secondly, the Ld. First Appellate Authority has also held that the AO has not specifically stated that as to how the assessee has filed inaccurate particulars or details and as why surrendered income is correct income of the assessee for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are deciding the Revenue s Appeal exparate qua assessee, after hearing the Ld. DR and perusing the records. 8. At the time of hearing Ld. DR relied upon the order passed by the AO and the contentions raised by the Department in the grounds of appeal. 9. We have heard the Ld. DR and perused the orders of the authorities below and we are of the view that the assessee has surrendered ₹ 30 lacs vide its letter dated 13.3.2007 addressed to the AO, after survey u/s. 133A of the Act carried out on the business premises of the assessee on 12.2.2007, as per record available with us. We have not seen that assessee has any retraction from its surrender of ₹ 30 lacs made vide his letter dated 13.3.2007 by mentioning any plausible rea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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