2015 (1) TMI 1235

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..... s declared the higher amount of Long term capital gain voluntarily upon its detection. Hence, we are unable to agree with the view of the tax authorities that the revised return of income was not voluntary one, but the assessee was constrined to enhance the Long term capital gain only upon the receipt of notice u/s 143(2) of the Act. Accordingly, we set aside the order of Ld CIT(A) on this issue and direct the assessing officer to delete the penalty levied on the enhanced Capital gain amount. - Decided in favour of assessee. With regard to the addition of ₹ 1,40,373/- made in the assessment order, we notice that the assessee has omitted to declare the same in the revised return of income also and no convincing explanation was given .....

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..... in disallowances. The AO took the view that the assessee has revised the return of income only after the enquiry was initiated by him. Accordingly the AO held that the penalty is leviable on a sum of ₹ 15,84,783/-, which included following amounts:- Long Term Capital gain enhanced amount - 11,27,484 Interest income Profit from Zuari Mutual fund added in the assessment order - 1,40,373 Accordingly, the AO levied a penalty of ₹ 2,46,300/-. The Ld CIT(A) also confirmed the penalty mainly on the reasoning that (a) The filing of revised return of income was not voluntary, since it was filed after selection of the original return of income f .....

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..... rn of income. He further submitted that the AO has also recognised the said return in the assessment proceedings. He also placed reliance on the decision rendered by the Delhi bench of Tribunal in the case of ACIT Vs. Ashok Raj Nath (2013)(33 taxmann.com 588), wherein the Tribunal had deleted the penalty levied under identical set of facts. 4. We have gone through the order passed by Delhi bench of Tribunal referred supra. We notice that the assessee therein had filed revised return of income beyond the time prescribed u/s 139(5) by enhancing the Long term capital gain, after the receipt of notice u/s 143(2) of the Act. Even though the revised return was invalid, the AO completed the assessment by accepting the income declared in the rev .....

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