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TMI Blog2012 (1) TMI 282X X X X Extracts X X X X X X X X Extracts X X X X ..... ut in the group cases of Soham Group on 10-5-2006. A search warrant of authorization u/s.132 was also issued in the name of the assessee. The assessment was completed u/s.153A of the Act. It was seen that as a result of search assessee declared income of ₹ 2,50,000/- on account of assessee s share in partnership firm which was not originally shown. At the time of search assessee was out of India and returned to India. When the assessee returned to India his statement was recorded u/s.131 of the Act on 25-7-2006.The assessee filed return in compliance to notice u/s/ 153A(1)(a) declaring income of ₹ 2,50,000/-. The AO assessed the total income accepting the returned income filed by the assessee. The AO levied penalty u/s. 271(1) ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ision of penalty u/s. 271(1)(c) is accordingly to be applied. The Apex Court in the case of Reliance Petroproducts (P) Ltd., 322 ITR 158 (SC), wherein the apex court laid down the law that the furnishing of inaccurate particulars or concealment of particulars are to be seen from the return filed by the assessee. The relevant observation of the Court is reproduced below:- 9. We are not concerned in the present case with the mens rea. However, we have to only see as to whether in this case, as a matter of fact, the assessee has given inaccurate particulars. In Webster s Dictionary, the word inaccurate has been defined as: not accurate, not exact or correct; not according to truth, erroneous; as an inaccurate statement, copy or t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee in response to notice u/s. 153A of the Act. The assessment was made by the AO on the basis of admission of assessee and not on basis of any material found during the course of search. Therefore, the case under consideration, is not the case that the assessee has furnished inaccurate particulars or concealed any particulars of income in the return of income filed u/s. 153A of the Act. When there is no such finding in respect of return filed by the assessee in response to notice u/s. 153A we find that penalty u/s. 271(1)(c) cannot be levied. We therefore, cancel the penalty of ₹ 78,750/- levied u/s./ 271(1)(c). 5. In the result appeal of the assessee is allowed. Order pronounced in Open Court on 13.01.2012. - - Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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