TMI Blog2021 (4) TMI 1139X X X X Extracts X X X X X X X X Extracts X X X X ..... period as mentioned in sub section 1 of Section 153 of Income Tax Act. As such the due dates for filing these returns were 31.10.1999, 31.10.2000 and 31.10.2001 respectively. While this being so, these returns were filed on 07.04.2005, 15.06.2005 and 19.12.2005 respectively for the assessment years. These filing of returns were also subsequent to the issue of notice dated 23.12.2004 under Section 148 of the Act after the survey under Section 133-A of the Act. It is also pertinent to mention that the survey under Section 133 A of the Act was conducted subsequent to which the audit of accounts was completed and the consequent Income Tax Returns were filed. Explanation 3 to Section 271(1)(C) is categorical as to where concealment of income can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the name and style of M/s.Hermes India (Madras). According to the appellant, the Assessing Officer of the Income Tax Department accepted the Income Tax Returns filed by him for the assessment years 1999-2000, 2000-2001 and 2001- 2002. However, a notice under section 274 was issued to him vide his order dated 27.09.2006 levying a penalty by invoking Explanation 3 to Section 271 (1)(C) of Income Tax Act, 1961 (Hereafter referred to as the Act). Aggrieved over the orders of the Assessing Officer, the appellant / assessee appealed to the Commissioner of Income Tax (Appeals) who allowed the appeals and set aside the order of the Assessing Officer vide his orders dated 23.03.2007. The Income Tax Department which was aggrieved by the orders o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was earlier assessed. He relied on the decision of Bombay High Court in CIT Vs Smt.Lata Shantilal Shah reported in (2009) 221 CTR 778 (Bombay) where it was held that the amended Explanation 3 would not apply to assessment years prior to 01.04.2003, if the assessee had filed returns earlier. He also relied on the decision of Gujarat High Court in Chagganlan Suteriya Vs Income Tax Officer reported in (2011) 337 ITR 350 (Gujarat) in which it was held that the 3rd condition of Explanation 3 of Section 271(1)(c) of the Act that notice under Section 142(1) or 148 of the Act should have been issued within the period specified under sub-section (1) of section 153 and therefore could not be deemed to be concealment within the meaning of Exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... concealed that particulars of his income in respect of such assessment year, notwithstanding that such person furnishes a return of his income at any time after the expiry of the period aforesaid in pursuance of a notice under section 148 . The amendment omitted the clause who has not previously been assessed under the Act with effect from 01.04.2003. The Explanation 3 to Section 271(1)(c) specifies that the assessee's non-filing of returns within the period specified in sub section (1) of Section 153 of the Act, non issue of any notice to him under clause(i) of sub section (1) of Section 142 or Section 148 until the period aforesaid and the Assessing Officer being satisfied that such person has taxable income are the three condit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income and when she was pointed out as to how and asked to state or to elaborate such reasonable cause she was unable to do so. She did not give any bonafide reason nor did she filed any documentary evidence in this regard before the authorities below for not furnishing the returns of income on due dates or even within the time allowed for finalization of the assessment as per section 153(1), she just insisted upon confirmation of the impugned orders . It is not also the case of the appellant that the Income Tax Returns were filed before the amendment to Explanation 3 to Section 271(1)(c) was brought in. Therefore, there is no substance in the contention of the learned counsel for the appellant in claiming that the said amendment has be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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