Bhavesh Pravinchandra Sheth Vs Asstt. CIT (ITAT Mumbai)
Conclusion: Since assessee had no intention to make a full and true disclosure of its income as it would not have filed a revised return of income showing higher income before issuance of the notice 143(2)/142(1) by AO, therefore, AO rightly held that assessee had deliberately and consciously failed to furnish full and true particulars of income and attempted to conceal income and levy of penalty under section 271(1)(c) was confirmed.
Held: In the instant case, in the original return filed on 30.09.2011, assessee had declared total income of Rs.9,773/-. The date of receipt of notice u/s 143(2) by assessee which was issued by the AO was 12.9.2012 and the date of receipt of notice u/s 142(1) which was issued by the AO was 15.9.2012. However, in the revised return of income filed on 25.09.2012, assessee had declared total income of Rs.25,22,599/-. The tax payable on it as per the assessee came to Rs.5,88,931/-. AO levied a penalty under section 271(1)(c) @ 100% of the tax sought to be evaded. It was held that assessee had no intention to declare its true income in the original return of income filed on 30.09.2011. Had it been the intention of the assessee to make a full and true disclosure of its income, it would have filed a revised return of income before the issuance of the notice 143(2)/ 142(1) by AO. Therefore, in the instant case, AO had rightly held that assessee had deliberately and consciously failed to furnish full and true particulars of income and attempted to conceal income. Thus, penalty was justified.
