TMI Blog2015 (12) TMI 1888X X X X Extracts X X X X X X X X Extracts X X X X ..... essee has filed the revised return by disclosing the additional income of Rs.3,00,000/- the same cannot be said to be voluntary because the return was filed only after the enquiries were conducted by the Department and the assessee was unable to substantiate the source of the same for which he declared the additional income. As per the provisions of section 271(1)(c) of the Act, penalty is leviable if the assessee has concealed the particulars of his income or furnished inaccurate particulars of such income. In the instant case, the assessee by declaring business income as agricultural income in the return of income has concealed the particulars of his income and furnished inaccurate particulars of such income. Provisions of section 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urse of such enquiry, the assessee had furnished the copies of 7/12 extracts in respect of agricultural land held by him. The assessee was holding 4 Hec. 05 R. of agricultural land. It was seen from the 7/12 extract and copies of sale patties of agricultural produce submitted by the assessee that the agricultural produce mentioned in 7/12 extract did not match with the sale patties produced by the assessee. Looking to the holding of agricultural land the agricultural income shown was also considered to be excessive. The assessee in his statement recorded under section 131 admitted that there was unexplained income of Rs.3,00,000/- during the year under consideration which was shown by him as agricultural income in the return of income and a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment proceedings. The assessee was not able to explain the sources of fund. It is clear that the assessee has misappropriated his regular income earned by way of various sources of income into agricultural income in the books of account to avoid the tax liability. By offering of Rs.3,00,000/- as unexplained income in the statement recorded by the Department on oath under section 131, the assessee has admitted that he has committed default of concealment of particulars of his income. The assessee deliberately filed the inaccurate particulars of his income in his original return of income. Therefore, the assessee knowingly and willfully filed inaccurate particulars of his income and thereby concealed the income. Rejecting the various dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of Rs.3,07,300/- shown by him in AY 2005-06, from the sale of agricultural produce did not match with the agricultural crops shown in 7/12 extracts. The appellant was holding only 4 ha 0.5 R of agricultural land and the agricultural income shown in AY 2005-06 was on a very higher side taking into consideration the size of the agricultural land holding. During the enquiries conducted by the ADIT(Inv-II), Nashik, the appellant declared the said agricultural income as business income and revised the return. The appellant's contentions that the AO did not write satisfaction note and that he revised the return on his own are factually incorrect. The AO has duly recorded his satisfaction in regard to initiation of penalty proceedings u/s 27 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant furnished inaccurate particulars of the income intentionally to evade tax and the AO was justified in levying penalty u/s 271(1)(c) for furnishing inaccurate particulars. The same is hereby confirmed. 8. The Ld. Departmental Representative strongly supported the order of the CIT(A). He submitted that the return filed by the assessee cannot be said as voluntary because only after the enquiry was conducted by the ADIT (Investigation), Nashik that the assessee declared the said income as business income in the revised return. Since the order of the CIT(A) upholding the penalty levied by the Assessing Officer is exhaustive, therefore, the same should be upheld. He submitted that unless the penalty is levied in such types of cases then ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income of Rs.3,00,000/- the same cannot be said to be voluntary because the return was filed only after the enquiries were conducted by the Department and the assessee was unable to substantiate the source of the same for which he declared the additional income. 11. As per the provisions of section 271(1)(c) of the Act, penalty is leviable if the assessee has concealed the particulars of his income or furnished inaccurate particulars of such income. In the instant case, the assessee by declaring business income as agricultural income in the return of income has concealed the particulars of his income and furnished inaccurate particulars of such income. Therefore the provisions of section 271(1)(c) are clearly attracted. Various decisions ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
