Case Law Details
Prabhjit Singh Sidhu Vs. Asst. DIT (International Taxation) (ITAT Chandigarh)
The facts before us also demonstrate that the disclosure in the return of income filed under section 148 of the Act was voluntary and before detection of the same by the Revenue. The payment of taxes on the said income two months prior to issue of notice under section 148 by the Revenue reveals that the assessee intended to disclose the same by way of revised return which he could have validly done in the said period since the limitation for filing the revised return expired on 31-3-2010 while the assessee had paid taxes on the impugned capital gain in the month of October, 2009. The explanation of the assessee that he did not disclose the same by way of a revised return in November, December, 2009 after paying taxes in October, 2009, on account of the fact or for the reason that he was out of the city has neither been controverted by the Revenue, nor provide to be false. Therefore, the disclosure of the same in the return filed in response to notice under section 148 of the Act on 2-1-2010 cannot be said to be after detection of the said income by the assessing officer.
Moreover, we find that the return filed in response to notice under section 148 disclosing the impugned capital gains has been regularized by the Revenue. Further, the bona fides of the assessee also stand established since he had bona fidely not disclosed the same in his return of income and intended disclosing thereafter by paying taxes on the same even before notice under section 148 was issued. Thus, the decision of the jurisdictional High Court in the case of Rajiv Garg (supra) squarely applies in the present case, following which we hold the assessee cannot be held to have concealed particulars of his income relating to capital grains amounting to Rs. 29,25,000.
FULL TEXT OF THE ITAT ORDER IS AS FOLLOWS:-
This appeal has been filed by the assessee against the order passed by the Commissioner (Appeals)-43, New Delhi, date 30-11-2015 pertaining to assessment year 2008-09 upholding the levy of penalty under section 271(1)(c) of the Income Tax Act, 1961 (in short ‘the Act’).
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