ACIT Vs Nath Corporation (ITAT Jaipur)
Survey Surrender Not Concealment – No Concealment in Return- ITAT Jaipur Deletes 271(1)(c) Penalties – Surrendered Income Already Disclosed in ROI
Revenue filed three appeals against orders of CIT(A) deleting penalties levied u/s 271(1)(c). In all three cases, survey u/s 133A was conducted on 09.12.2014, wherein excess stock of Rs.3.94 crore (Shri Nath Corporation), Rs.3.16 crore (Royal Jewellers) & Rs.3.38 crore (Shri Jitendra Kumar Agarwal) was found. Assessees surrendered these amounts as additional income for AY 2015-16 & included them in ROI filed u/s 139(1). Subsequently, search u/s 132 took place on 28.07.2016 & assessment u/s 153A was completed accepting same income without variation. AO however levied penalties of Rs.1.34 crore, Rs.94.83 lakh & Rs.1.01 crore respectively u/s 271(1)(c) on ground that income would have remained undisclosed but for survey.
CIT(A) deleted penalties, holding that once surrendered income was duly disclosed in ROI filed u/s 139(1) & reiterated in return u/s 153A, there was no concealment. Penalty u/s 271(1)(c) must be based on concealment/inaccurate particulars in return, not merely on survey findings. Reliance was placed on Delhi HC ruling in SAS Pharmaceuticals (335 ITR 259), SC in Reliance Petroproducts (322 ITR 158) & Delhi HC in Neeraj Jindal (393 ITR 1).
