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TMI Blog2015 (1) TMI 1161X X X X Extracts X X X X X X X X Extracts X X X X ..... return, as a matter of purchasing peace, by itself, would not exonerate the assessee from the culpability. Having regard to the fact that the assessee had not disclosed any reason for the omission in the original return and that the revised return was filed only after the search, this Court held that penalty was leviable. When there is no satisfactory explanation as regards its non-disclosure of the income in the original return and that the undisclosed income came to be shown only in the revised return, rightly the Tribunal reversed the order of first appellate authority cancelling the penalty. - Decided against assessee. - Tax Case (Appeal) No.602 of 2007 - - - Dated:- 19-1-2015 - MR. R.SUDHAKAR AND MR. R.KARUPPIAH, JJ. For t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... showing a total income of ₹ 10,86,060/-, which includes NRE gift received by the assessee. The assessee also furnished the details of the persons from whom he received the said NRE gifts. Since the assessee concealed the income in the original return filed, the Assessing Officer initiated penalty proceedings under Section 271(1)(c) of the Income Tax Act by issuing notice to the assessee. In response to the said notice, the assessee, in order to buy peace, offered the whole amount of gift as income. Since the assessee is not able to prove the genuineness of the NRE gifts, the assessee agreed to offer the said amount as income for the assessment year 1995-96. Hence the Assessing Officer completed the assessment under Section 143(3) read ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the assessee pointed out that when the assessee had voluntarily offered the income, in the absence of any wilfulness in not disclosing the same, the question of levy of penalty did not arise. He pointed out that there was no concealment as such, as had been viewed by the Assessing Authority and as confirmed by the Tribunal. 8. Heard learned counsel appearing for the assessee and the learned Standing Counsel appearing for the Revenue and perused the materials placed before this Court. 9. It is seen from the order of the Assessing Officer that after the survey being conducted in the premises of the assessee, the assessee offered the NRE gift as income and filed revised return. Hence, the Assessing Officer initiated penalty proceedi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d not exonerate the assessee from the culpability. Having regard to the fact that the assessee had not disclosed any reason for the omission in the original return and that the revised return was filed only after the search, this Court held that penalty was leviable. 11. The facts herein are no different from the above said decisions. As seen from the narration in the order of the Tribunal as well as that of the other authorities, the assessee filed the revised return only after survey operation in the business premises of the assessee. The conduct of the assessee, hence, assumes significance in coming forward to disclose the income. When there is no satisfactory explanation as regards its non-disclosure of the income in the original ret ..... X X X X Extracts X X X X X X X X Extracts X X X X
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