TMI Blog2022 (12) TMI 1470X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act. Since the search took place during the year under consideration at the premises of third party, and there was still time to file return of income, the said income in respect of on-money receipts was included in the income offered to tax by the assessee in the return of income. Even the AO in the penalty order has failed to specify under which specific clause of section 270A of the Act does the case of the assessee fall under. CIT(Appeals) in his appellate order has analysed the non-applicability of the provisions of section 270A of the Act in the instant set of facts. Accordingly no infirmity in the order of Ld. CIT(Appeals) deleting penalty imposed under section 270A Decided in favour of assessee. - Ms. Annapurna Gupta, Accountant Member And Shri Siddhartha Nautiyal, Judicial Member For the Appellant : Shri Mehul Ranpura, A.R. For the Respondent : Shri Shramdeep Sinha, CIT-D.R. ORDER PER : SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER:- These are appeals filed by the Department against the order deleting levy of penalty under section 270A of the Act for misreporting of income in case of property sold jointly by Shri PrafulbhaiFuletra and Shri Din ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on had been conducted on the searched party Shri Rajnikant Bhesdadia, the assessee would have shown only Rs 46,08,000/- as sale consideration in respect of the above properties as per registered sale documents presented before the subregistrar. Therefore, the on-money receipts of Rs 4,20,60,000/- would have remained unaccounted in the books of the assessee, in case the search would not have been made at the premises of Shri Rajnikant Bhesdadia. Therefore, as per the AO this was a case of misreporting of income under subsection (8) and (9) of section 270A of the Act. Further, the AO held that the assessee has not offered any bona-fide explanation to the satisfaction of AO. 4. In appeal before Ld. CIT(Appeals), the assessee contended that no search proceedings was carried out at the premises of the assessee. However, on the basis of seized papers at the residence of Shri Rajnikant Bhesdadiai.e. at third party premises, who is the brother-in-law of the assessee, the assessee offered LTCG in his return of income filed under section 139 of the Act on 08-03-2018 at the returned income of Rs 2,39,12,710/- including LTCG of Rs 2,25,35,829/- on the basis of aforesaid seized papers. Subse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be NIL as per provisions of section 270A(3)(i)(a) of IT Act as there was no difference between the amount of income assessed and amount of income determined u/s.143(1)(a) of IT Act. Therefore, there was no case of under reporting of income as per provisions of section 270A(2) and (3) of IT Act. 6.6 Now with regard to misreporting of income as per provisions of section 270A(9) the case of the assessee does not fall in any of the clauses specified at ( a to f) . Neither any misrepresentation of suppression of facts has occurred nor there was any false entries in the books of accounts as mentioned in various clauses of 270A(9) of IT Act. In other words, during the year under consideration search was carried out at the premises of the third party where from on the basis of seized documents the assessee's on-money transactions were found. These transactions were duly offered for taxation by the assessee and his brother in their return of income filed u/s. 139 of IT Act. Since the return of income was not due as on the date of search carried out on 10.08.2016 and the accounting year was not ended also therefore the books of accounts were not up-dated. Therefore, the assessee&# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -reporting and misreporting of income. 270A. (1) The Assessing Officer or the Commissioner (Appeals) or the Principal Commissioner or Commissioner may, during the course of any proceedings under this Act, direct that any person who has under-reported his income shall be liable to pay a penalty in addition to tax, if any, on the under-reported income. (2) A person shall be considered to have under-reported his income, if (a) the income assessed is greater than the income determined in the return processed under clause (a) of sub-section (1) of section 143; (b) the income assessed is greater than the maximum amount not chargeable to tax, where no return of income has been furnished or where return has been furnished for the first time under section 148; (c) the income reassessed is greater than the income assessed or reassessed immediately before such reassessment; (d) the amount of deemed total income assessed or reassessed as per the provisions of section 115JB or section 115JC, as the case may be, is greater than the deemed total income determined in the return processed under clause (a) of sub-section (1) of section 143; (e) the amount ..... X X X X Extracts X X X X X X X X Extracts X X X X
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