TMI Blog2019 (2) TMI 638X X X X Extracts X X X X X X X X Extracts X X X X ..... cords that the appellant failed to prove the genuineness and/or creditworthiness and identity of the persons who had given share capital and premium. Moreso, had it been the intention of the appellant to disclose the income voluntarily then the assessee would have disclosed the same by filing the revised return before survey which proves inaccurate particulars were filed in order to conceal the income in the original return of income. Explanation – 1A to Section 271(1)(c), therefore, is fully satisfied and thus ultimately penalty to the tune of ₹ 5,50,000/- has been levied upon the assessee for concealment of total income of ₹ 1,60,00,000/-. Taking into consideration the entire aspect of the matter specially the conduct of the assessee and the intention as evident from the series of events and in the light of the judgment passed by the Hon’ble Apex Court as cited above we find that the authorities below rightly applied the ratio of said judgment in the case in hand and levied penalty. We find no ambiguity in confirming the said penalty - decided in favour of revenue - I.T.A. No.1053/Ahd/2016, I.T.A. No. 1054/Ahd/2016 And I.T.A. No. 1055/Ahd/2016 - - - Dated:- 8-2-20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave not disclosed the income for taxation and thus the penalty proceeding u/s 271(1)(c) of the Act was initiated by the Learned AO. The same was concluded by the Learned AO upon levying penalty to the tune of ₹ 5,50,000/- on the assessee which was confirmed by the Learned CIT(A). Hence the instant appeal. 3. At the time of hearing of the appeal, Learned Counsel appearing for the assessee submitted before us that the assessee has filed the revised return much before the issuance of notice u/s 148 of the Act. The disclosure so made by the assessee at the time of survey was also declared in such revised return and tax was duly paid thereon. It was further contended by the Learned Advocate that to purchase peace, the assessee has disclosed such income upon assurance given by the survey officers that penalty would not be levied upon him as also appearing in the letter written to the Investigation Wing on 20.10.2010 by the assessee. Thus according to the Learned AO penalty cannot be levied. On the other hand the Learned DR relied upon the order passed by the authorities below. 4. We have heard the Learned Counsel appearing for the respective parties. We have perused the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ary amount disclosed by the assessee was on good faith that no penalty could be levied. Moreso, revised return was filed before the issuance u/s 148 of the Act and the assessment was done on the revised return of income. Furthermore, no addition on the income declared in the revised return was made by the assessing officer. At the time of disclosing of income in survey assurance was given for liability to pay tax only and therefore the assessee would not be liable for levy of penalty. In that view of the matter, the assessee prayed for dropping of penalty before the Authorities below. However, such plea of the assessee was not acceded to by the Learned AO and by the Learned CIT(A) as well on the premise that voluntarily disclosure does not release the assessee from penal proceeding. The assessee has disclosed such amount of income after the survey was conducted by filing of revised return of income thus the same cannot be considered as bonafide as also observed by the Learned CIT(A). The assessee did not disclose this income in its original return filed. It was further observed by the Learned CIT(A) that such disclosure has been made purely on account of survey conducted by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cope of Explanation 1 to Section 271(1)(c) of the Act, which reads as follows :- Explanation 1 - Where in respect of any facts material to the computation of the total income of any person under this Act, - (A) Such person fails to offer an explanation or offers an explanation which is found by the Assessing Officer or the Commissioner (Appeals) or the Commissioner to be false, or (B) Such person offers an explanation which he is not able to substantiate and fails to prove that such explanation is bona fide and that all the facts relating to the same and material to the computation of his total income have been disclosed by him, then the amount added or disallowed in computing the total income of such person as a result thereof shall, for the purposes of clause (c) of this sub-section, be deemed to represent the income in respect of which particulars have been concealed. 7. The AO, in our view, shall not be carried away by the plea of the assessee like voluntary disclosure , buy peace , avoid litigation , amicable settlement , etc. to explain away its conduct. The question is whether the assessee has offered any explanation for concealment of particula ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , to explain the source of payments made by it and to declare its true income in the return of income filed by it from year to year. The AO, in our view, has recorded a categorical finding that he was satisfied that the assessee had concealed true particulars of income and is liable for penalty proceedings under Section 271 read with Section 274 of the Income Tax Act, 1961. 10. The AO has to satisfy whether the penalty proceedings be initiated or not during the course of the assessment proceedings and the AO is not required to record his satisfaction in a particular manner or reduce it into writing. The scope of Section 271(l)(c) has also been elaborately discussed by this Court in Union of India v. Dharmendra Textile Processors [2008] 13 SCC 369 and CIT v. Atul Mohan Bindal [2009] 9 SCC 589. 11. The principle laid down by this Court, in our view, has been correctly followed by the Revenue and we find no illegality in the department initiating penalty proceedings in the instant case. We, therefore, fully agree with the view of the High Court. Hence, the appeal lacks merit and is dismissed. There shall be no order as to costs. 7. It also appears from the recor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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