9911796707
TMI Blog2011 (11) TMI 737X X X X Extracts X X X X X X X X Extracts X X X X ..... 04 in ITA No. 1024/Kol/2010, the outcome of which will squarely be applicable to other two appeals for assessment years 2004-05 and 2005-06. 2. The only issue involved in this appeal is in respect of levy of penalty of ₹ 20,917/- u/s. 271(1)(c) of the Act, which was confirmed by the Ld. C.I.T.(A). The assessee filed his return for the assessment year under consideration showing total income of ₹ 2,58,778/-. Subsequently, in response to notice u/s. 148 of the Act, the assessee filed return showing income under the head other sources amounting to ₹ 78,395/- in respect of the following :- a) Interest on NSC ₹ 43,880 b) Interest on Fixed Deposit ₹ 34,343 c) Interest from savings bank &# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent, FDR, saving bank deposit etc. in his return of income. This is clearly a case where the assessee has concealed his income and which is liable for levying of penalty u/s. 271(1)(c). The fact that the assessee filed return of income in response to the notice u/s. 148 and included the undisclosed income in that return cannot absolve the assessee from this penalty because in the original return the undisclosed income had not been shown. This income had to be included by the assessee in the return filed u/s. 148 because it was detected by the department and the assessee did not have any choice but to accept this. The A/R has referred to a number of court cases and has claimed that for levying penalty u/s. 271(1)(c) the A.O. has to prove men ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f interest voluntarily on receipt of the notice u/s. 148 of the Act. It is further observed that the Ld. C.I.T.(A) in the impugned order stated that the assessee has offered the interest income only because it was detected by the department and the assessee did not have any choice but to accept this. In order to support this fact, we find no material on record. We, therefore, set aside the orders of the authorities below and direct the Ld. A.O. not to levy penalty u/s. 271(1)(c) of the Act, as because the revenue has no where mentioned that reopening is made to assess the interest income on the NSC, Fixed Deposits and savings bank account. On the other hand, we observe that the assessee was under the bona fide impression that the accrued in ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
