2012 (9) TMI 1015 - AT - Income Tax

Summary

Issues involved: Appeal against penalty u/s 271(1)(c) for concealment of income.

Summary:
The appellant, a Private Limited Company, filed revised income showing additional amount not offered in the original return after a survey u/s 133A. The AO levied penalty u/s 271(1)(c) on the unaccounted income. The CIT(A) upheld the penalty stating that the case was not covered u/s 271AAA as the return was filed before the search. The appellant argued for relief u/s 271AAA based on director's disclosure during post-search proceedings. The Tribunal noted the director's disclosure of total amount for the group during search and concluded that provisions of 271AAA should apply. The penalty was deleted, and the appeal was allowed.

In detail, the appellant, engaged in manufacturing and trading activities, filed a revised return showing additional income not offered initially, based on expenses found during a survey. The AO imposed a penalty u/s 271(1)(c) for concealment of income. The CIT(A) upheld the penalty, stating that the case did not fall u/s 271AAA as the return was filed before the search. The appellant argued for relief u/s 271AAA, citing the director's disclosure during post-search proceedings. The Tribunal observed the director's disclosure of the total amount for the group during the search and concluded that provisions of 271AAA should apply, deleting the penalty and allowing the appeal.