Sarat Gopal Boppana Vs ACIT (ITAT Hyderabad)
ITAT Hyderabad held that voluntary surrender of income in good faith cannot be considered as concealment of income. Hence, penalty u/s. 271(1)(c) of the Income Tax Act cannot be sustained.
Facts- Assessee is an individual and derives income from capital gain and income from other sources. The assessee had filed his original return of income u/s 139(1) of the I.T. Act, 1961 on 30.08.2015 declaring total income of Rs.4,41,180/-. A search & seizure operation was conducted on the assessee as part of the search conducted on M/s. Skill Promoters Pvt. Ltd. Consequent to search notice u/s 153A was issued. The assessment has been completed u/s 143(3) r.w.s. 153A on 25.09.2021 and accepted the income returned by the assessee without any further addition to income.
Thereafter, penalty proceedings u/s 271(1)(c) of the I.T. Act, 1961 was initiated. AO opined that although the appellant have admitted additional income in the return of income filed u/s 153A, but additional income declared by the assessee fall under deemed concealment and thus, opined that it is a fit case for levy of penalty u/s 271(1)(c) of the I.T. Act, 1961. Thus, rejected the explanation of the assessee and levied penalty of Rs.62,08,225/- being 100% tax sought to be evaded. CIT(A) sustained the penalty levied by AO. Being aggrieved, the present appeal is filed.
