TMI Blog2022 (6) TMI 516X X X X Extracts X X X X X X X X Extracts X X X X ..... for the penalty, is not the one which was added by the AO beyond the income returned. Assessee voluntarily offered the income, declared in the survey, in the return of income and the assessment was made without making any addition on that score, we hold that such an income cannot constitute the bedrock for the imposition of penalty u/s.271(1)(c) of the Act. We, therefore, affirm the impugned order - Decided in favour of assessee. - ITA No. 368/PUN/2020 - - - Dated:- 9-6-2022 - Shri R.S. Syal, Vice President And Shri S.S. Viswanethra Ravi, Judicial Member For the Assessee : Shri B.C. Malakar For the Revenue : Shri M.G. Jasnani ORDER PER R.S. SYAL, VP : This appeal by the Revenue is directed against the order pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was otherwise within the stipulated time frame. The AO accepted the returned income and did not make any addition. After that, he imposed penalty on the amount offered by the assessee in the return of income pursuant to survey. Under these circumstances, a question arises as to whether the assessee can be visited with penalty u/s.271(1)(c) on such income? 4. Explanation 1 to section 271(1) provides that where in respect of any facts material to the computation of total income, the assessee fails to offer an explanation or offers explanation which is found by the AO etc. to be false or he is unable to substantiate, then the amount added or disallowed in computing total income of such person as a result thereof shall, for the purposes of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion was taken against the assessee on 16-12- 2003. No income was offered during the course of survey and as such nothing was included in the return filed after the date of survey on that count. It was during the course of assessment proceedings and in reply to show cause notice filed on 22-11- 2006 that the assessee made an offer of surrendering a sum of Rs.40.74 lakh. The AO accordingly completed the assessment by making this addition and thereafter imposed penalty. It was in this backdrop of the facts that the Hon ble Supreme Court held that the penalty u/s.271(1)(c) was rightly imposed because the disclosure of the assessee was immaterial. The Hon ble Supreme Court observed that Explanation to section 271(1) raises a presumption of con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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