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TMI Blog2017 (12) TMI 878X X X X Extracts X X X X X X X X Extracts X X X X ..... essing Officer, has accepted the revised return, however initiated the penalty proceedings u/s.271(1)(c) on the ground that assessee has surrendered the amount of Rs. 10,69,06,500/- after the search operation in the case of N. Suryanarayan Group of cases. Accordingly, in the penalty proceedings also Assessing Officer had observed that it was in the wake of search and seizure operation conducted in the case of N. Suryanarayn Group on 09.10.2010, that assessee had offered the additional income in the revised return and after incorporating the relevant extract from the assessment order, he held that assessee has concealed the income to the extent of additional income offered in the revised return and accordingly, levied the penalty after invoking Explanation-1 to Section 271(1)(c) for a sum of Rs. 3,59,84,728/-. 4. Before ld. CIT(A), the assessee had submitted that the additional income which has been offered was already accounted for in books of account by the assessee as the income from business for the next year Assessment Year 2010-11 at Rs. 10,09,06,500/- and in fact first installment of advance tax of Rs. 80 lakhs was also paid on 29.10.2009 for the Assessment Year 2010-11. Whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... parties. In view of these facts, both the amounts accrued in the F.Y. 2009-10 pertaining to A.Y.2010-11. Therefore, the assessee accounted for the income of Rs.10,09,06,500/- (42762600 + 64143900) in A.Y. 2010-11 and paid advance tax thereon." 5. It was further submitted that no search and survey action was undertaken in the case of the assessee and assessee himself has accounted for the entire amount in the books of account of M/s. New Idea Asia, a proprietorship concern of the assessee, as business income in the financial year 2009-10. In the revised return the assessee had made following disclosure. "In respect of above said matter, it is stated that I have already offered certain advances as income for the purpose of taxation for the year ended 31/03/2009 instead of the same being reflected as income for the immediately succeeding year. Undoubtedly, the said advances were received through normal banking channel and were duly reflected in the books of accounts. Nothing was hidden or veiled as such and only taxation of such receipt, instead of having been offered in the financial year 2009-10 was voluntarily offered by me in the immediately preceding financial year i.e. 2008- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onal income offered in the revised return of income. 8. On the other hand, learned counsel for the assessee after reiterating the observations made by the ld. CIT(A) in the impugned appellate order, submitted that herein in this case it cannot be disputed that, firstly, no search and survey action was taken in the case of the assessee which could be said to have persuaded the assessee for offering the additional income and the revised return of income; secondly, revised return was filed on 18.01.2010 much before the assessee's case was selected for scrutiny which is evident from the fact that notice u/s.143(2) was issued after the period of eight months and show cause notice was issued by the Assessing Officer almost after the two years from the date of filing of revised return; and lastly, this income was already accounted for as business income in the books of account of the assessee to be offered in the Assessment Year 2010-11 for which already advanced tax was paid. In view of these facts and circumstances, it cannot be held that assessee had tried to either conceal the income or the income which has been offered in the revised return was not voluntarily. Thus, order of the ld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 80 lakhs was paid. 18.01.2010 The assessee filed revised return of income declaring income of Rs. 11,38,33,301/- which included the said additional income of Rs. 10,69,06,500/-. In the revised return of income assessee had clearly disclosed that, already this amount has been offered as income for the purpose of taxation in the books of account in the financial year 2009-10 and these advances had been received through normal banking channel duly reflected in the books of account and only taxation of receipt has been shifted in this year which is purely voluntarily and therefore no penalty or any other punitive action of any nature should be initiated. 25.08.2010 Notice u/s. 143(2) has been issued by the Assessing Officer for scrutiny. 09.12.2011 The first show cause notice was issued by the Assessing Officer whereby this issue was raised by the Assessing Officer. 30.12.2011 Assessment order u/s.143(3) has been passed, wherein the revised return filed by the assessee has been accepted by the Assessing Officer in the following manner: "In response, assessee files various details through its authorized representative, which are placed on record. Shri Ashish Jain has al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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