Case Law Details
DCIT Vs NBM Iron & Steel Trading Pvt Ltd (ITAT Ahmedabad)
In the case of DCIT vs. NBM Iron & Steel Trading Pvt. Ltd. [ITA No. 205/Ahd/2022, dated May 17, 2023], the ITAT, Ahmedabad held that if an assessee voluntarily declares income during a survey and later includes it in their regular income tax return, no penalty under Section 271(1)(c) can be imposed. ITAT held that taxpayer had accurately disclosed the surrendered income, making the penalty unjustifiable.
Facts:
M/s. NBM Iron & Steel, Trading Pvt. Ltd. (“the Respondent”) is engaged in the business of ship breaking. The Revenue department conducted a survey under Section 133A of the Income Tax Act, 1961 (“the IT Act”) at the business premises of the Respondent and a search action under Section 132 of the IT Act at the residential premises of the Respondent both dated January 12, 2010.
During a search the director of the Respondent declared income of INR 1,80,00,000/- of the Respondent and INR 20,00,000/- in his individual capacity.
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