9911796707
TMI Blog2024 (5) TMI 1394X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, for the assessment year 2015-16. 2. In this appeal, the assessee has raised the following grounds: - "Levy of penalty under section 271(1)(c) of the Act is not justified Rs. 90,922/-" 1. National Faceless Appeal Centre (hereinafter referred to as "the NFAC"] erred in confirming the penalty of Rs. 90,922/- without appreciating that the Assessee has neither concealed any income nor furnished any inaccurate particulars of income. Thus, the levy of penalty of Rs. 90,922/- under section 271(1)(c) of the Act is not justified and the same may be deleted. 2. The NFAC failed to appreciate that the capital gains of Rs. 5,87,740/received on sale of shares of M/s. Action Financial Services (India) Limited was duly offered for tax by the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ock, proceedings u/s 147 of the Act were initiated and notice u/s 148 of the Act was issued on 27/03/2019. In response to the aforesaid notice, the assessee e-filed his return of income on 09/10/2019 declaring a total income of Rs. 32,02,220/- after offering the Long Term Capital Gain of Rs. 5,87,740/- arising from transaction in shares of M/s. Action Financial Services (India) Ltd. Vide order dated 10/12/2019 passed u/s 143(3) read with section 147 of the Act the total income of the assessee was assessed at the returned income. 5. Meanwhile, penalty proceedings u/s 271(1)(c) of the Act were initiated, and notice u/s 274 read with section 271(1)(c) of the Act was issued to the assessee. In response thereto, the assessee submitted that he h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered to tax by the assessee is not voluntary but the same is only in response to the notice issued u/s 148 of the Act. Being aggrieved, the assessee is in appeal before us. 7. We have considered the submissions of both sides and perused the material available on record. In the present case, it is undisputed that in the original return of income, the assessee declared a total income of Rs. 26,14,480/, after claiming exemption of Long Term Capital Gain u/s 10(38) of the Act on sale of shares of M/s. Action Financial Services (India) Ltd. However, upon receipt of notice u/s 148 of the Act on the basis that M/s. Action Financial Services (India) Ltd is a penny stock listed on the Bombay Stock Exchange and has been used to facilitate the introd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion Financial Services (India) Ltd. Further, there is also no material on record to show that the assessee subsequently again claimed the Long Term Capital Gain to be exempt. Since the additional income on account of the aforesaid Long Term Capital Gain was offered to tax only in response to the notice issued u/s 148 of the Act, we agree with the findings of the lower authorities that the same is not voluntary but is consequential to the issuance of notice u/s 148 of the Act. In view of the above, we also do not find any merits in the submissions of the assessee that no penalty can be levied in the present case since the returned income and assessed income are same, as the only basis of issuance of notice u/s 148 of the Act was the alleged ..... X X X X Extracts X X X X X X X X Extracts X X X X
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