9911796707
TMI Blog2013 (6) TMI 356X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome was disclosed which is on the basis of CAG report, which was not even in the knowledge of the AO. Further as for both the assessment years the assessment has been passed u/s. 143(3), thus once, an assessment order is passed u/s. 143(3) that too accepting the returned income, it is presumed that the AO has condoned the action of the delay in furnishing of the returns in response to notice u/s. 148 - cancellation of penalty confirmed. In favour of assessee. Penalty u/s 271(1)(c) - CIT(A) deleted the penalty - Held that:- CIT(A) in his order also recognized the fact that the assessee has after completion of the statutory audit by the CAG had truthfully come forward and had filed the details of the true income and even before filing of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be issued on the assessee for both the assessment years on 17.03.2009. It was the submission that there was no compliance to the said notice u/s. 148 of the Act and reminders had been sent to the assessee on 12.08.2009, 21.10.2009 and 23.10.2009. It was the submission that the return in response to the notice u/s. 148 of the Act was subsequently filed on 17.11.2009 declaring a much higher income than what was declared in the original return. It was the submission that the income as declared in the return in response to the notice u/s. 148 of the Act had been accepted in the course of assessment. It was the submission that on account of the non-cooperation by the assessee in regard to the filing of the return in response to the notice u/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her, a perusal of the assessment order in the present case also clearly shows that for both the assessment years the assessment has been passed u/s. 143(3) of the Act. Once, an assessment order is passed u/s. 143(3) of the Act that too accepting the returned income, it is presumed that the AO has condoned the action of the delay in furnishing of the returns in response to notice u/s. 148 of the Act. Under these circumstances, we are of the view that cancellation of the penalty levied u/s. 271(1)(b) of the Act by the Ld. CIT(A) is on a right footing by accepting the reasonable cause and calls for no interference. 6. In the result, the order of the Ld. CIT(A) cancelling the levy of penalty u/s. 271(1)(b) of the Act stands upheld and the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pired. It was the submission that though the revenue had no information in respect of the CAG report and the income that was quantified as per the CAG report in the case of the assessee, the assessee had paid its taxes and had filed its return in response to the notice u/s. 148 of the Act. It was the submission that the higher income had been disclosed by the assessee voluntarily. It was the submission that the AO had reopened the assessment of the assessee by issuing notice u/s. 148 of the Act in respect of a minor depreciation issue. It was the submission that the return filed by the assessee in response to the notice u/s. 148 of the Act had been accepted by the AO without any tinkering. It was the submission that the order of the CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee has concealed any particulars of its income or has furnished any inaccurate particulars of income. Further, a perusal of the penalty order passed u/s. 271(1)(c) of the Act clearly shows that the assessee has given a detailed explanation for the variation in its income insofar as the original return had been filed on the basis of the provisional accounts and the return in response to notice u/s. 148 of the Act was filed on the basis of the CAG audited accounts. This submission of the assessee has also not been shown to be false or impossible explanation. The fact that the AO has accepted the returned income as per the return filed in response to the notice u/s. 148 of the Act further fortifies the explanation given by the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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