Case Law Details
ACIT Vs Swapnadeep Krushi Paryatan Kendra (ITAT Pune)
The AO has imposed penalty only with reference to the amount of Rs.1.50 crore which was suo motu declared by the assessee in the return. In that view of the matter, the ratio laid down in MAK data Pvt. Ltd. (supra) has no application to the facts of the extant case as the income under consideration, forming the foundation for the penalty, is not the one which was added by the AO beyond the income returned. In view of the fact that the assessee voluntarily offered the income, declared in the survey, in the return of income and the assessment was made without making any addition on that score, we hold that such an income cannot constitute the bedrock for the imposition of penalty u/s.271(1)(c) of the Act. We, therefore, affirm the impugned order.
FULL TEXT OF THE ORDER OF ITAT PUNE
This appeal by the Revenue is directed against the order passed by the CIT(A)-3, Pune on 03-12-2019 deleting the penalty of Rs.52,95,454/- imposed by the Assessing Officer u/s 271(1)(c) of the Income-tax Act, 1961 (hereinafter also called `the Act’) in relation to the assessment year 2014-15.
2. Briefly stated, the facts of the case are that the assessee filed its return on 06-11-2015 declaring total income of Rs.1,55,79,450/-. The total income included a sum of Rs.1.50 crore declared by the assessee as additional income during the course of survey u/s.133A of the Act conducted on 24-02-2015. The Assessing Officer (AO) completed the assessment at the returned income and thereafter imposed the penalty u/s.271(1)(c) of the Act on the income of Rs.1.50 crore. The reason given by the AO was that the assessee would not have offered its income if the survey had not taken place. The penalty came to be deleted in the first appeal.
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