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TMI Blog2015 (10) TMI 1762X X X X Extracts X X X X X X X X Extracts X X X X ..... t any particulars of income had been concealed by the assessee while filing the said return, nor is there any finding that any inaccurate particulars of income were furnished. The Assessing Officer has invoked the provision of section 271(1)(c) of the Act on the ground that the disclosure made in the return was not voluntary. In this regard it may be noted that section 271(1)(c) of the Act does not include “involuntary disclosure” as one of the grounds for imposing penalty. Under the circumstances, no infirmity can be found in the impugned order passed by the Tribunal in setting aside the order of penalty. - Decided in favour of assessee. - TAX APPEAL NO. 678 of 2015 - - - Dated:- 28-9-2015 - MS. HARSHA DEVANI AND MR. A.G.URAIZEE, JJ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onnection therewith, the assessee filed a revised return of income for relevant year on 28.09.2009 declaring total income of ₹ 1,40,10,190/- and paid taxes accordingly. The Assessing Officer initiated proceedings under section 271(1)(c) of the Act on the ground that the assessee had furnished inaccurate particulars/concealed income of ₹ 1,20,00,000/-. The Assessing Officer upon conclusion of the said proceedings, was of the view that the income of ₹ 1,20,00,000/- as offered by the assessee in the revised return was filed only after the detection of unaccounted receipt of ₹ 1,20,00,000/- as a result of survey action under section 133A of the Act and therefore, the same does not fall within the ambit of voluntary disc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not release the assessee from the mischief of penal proceedings. The law does not provide that when an assessee makes a voluntary disclosure of his concealed income, he had to be absolved from penalty. The court held that the Assessing Officer should not be carried away by the plea of the assessee like voluntary disclosure , buy peace , avoid litigation , amicable settlement etc. to explain away its conduct. The question would be whether the assessee has offered any explanation for concealment of particulars of income or furnishing inaccurate particulars of income. It was submitted that the above decision would be squarely applicable to the facts of the present case wherein, the disclosure made by the respondent assessee is not volun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10. We are of the view that the surrender of income in this case is not voluntary in the sense that the offer of surrender was made in view of detection made by the AO in the search conducted in the sister concern of the assessee. In that situation, it cannot be said that the surrender of income was voluntary. AO during the course of assessment proceedings has noticed that certain documents comprising of share application forms, bank statements, memorandum of association of companies, affidavits, copies of Income Tax Returns and assessment orders and blank share transfer deeds duly signed, have been impounded in the course of survey proceedings under section 133A conducted on 16.12.2003, in the case of a sister concern of the assessee. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessment proceedings. Consequently, it is clear that the assessee had no intention to declare its true income. 10. Adverting to the facts of the present case, during the course of survey no undisclosed income was detected by the department. No incriminating material was found during the course of survey so as to prove that the assessee firm had earned undisclosed income. The assessee had voluntarily declared undisclosed income in relation to two assessment years and shown willingness to pay income-tax thereon. The assessee, accordingly, filed revised return of income declaring the income as stated during the course of survey, which came to be accepted by the Assessing Officer, without making any addition. Thus, it may be pursuan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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