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TMI Blog2017 (2) TMI 806X X X X Extracts X X X X X X X X Extracts X X X X ..... e as detailed above - Decided in favour of assessee. - I .T.A. No.2764/Mum/2015 - - - Dated:- 15-2-2017 - SHRI C.N. PRASAD, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER For The Assessee : Mr. Darshan Gandhi For The Revenue : Mr. R.A. Dhyani, DR ORDER PER RAMIT KOCHAR, Accountant Member This appeal, filed by the assessee, being ITA No. 2764/Mum/2015, is directed against the appellate order dated 20-02-2015 passed by the learned Commissioner of Income Tax (Appeals)- 4, Mumbai (hereinafter called the CIT(A) ), for assessment year 2009-10, the appellate proceedings before the learned CIT(A) arising from the penalty order dated 30th April, 2012 passed by learned Assessing Officer ( hereinafter called the AO ) u/s 271(1)(c) of the Income-tax Act,1961 (Hereinafter called the Act ). 2. The grounds of appeal raised by the assessee in memo of appeal filed with the Income-Tax Appellate Tribunal, Mumbai (hereinafter called the tribunal ) read as under:- The Ld. CIT(A) erred in confirming the order of the Assessing Officer for levy of penalty amounting to ₹ 6,58,573/- u/s 271(1)(c) of the Income Tax Act, 1961. 3. Brief facts of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act was 31- 07-2009. The A.O. added the amount of ₹ 19,37,552/- received by the assessee as Management bonus from Fairdeal Multimedia Pvt. Ltd. to the income of the assessee in quantum assessment proceedings vide assessment order dated 24-10-2011 passed by the AO u/s 143(3) of the Act wherein the assessed income was ₹ 2,45,41,430/- as against returned income of ₹ 2,26,03,878/- . The said assessment order dated 24-10-2011 reached finality as the same was accepted by the assessee and no further appeal was filed by the assessee. The income of ₹ 19,37,552/- received by the assessee as management bonus was offered to tax by the assessee during the course of assessment proceedings by filing revised computation of income and no revised return of income was filed by the assessee. The A.O. invoked provisions of section 271(1)(c) of the Act and levied penalty of ₹ 6,58,573/- u/s 271(1)(c) of the Act vide orders dated 30-04-2012. Notice dated 24.10.2011 u/s 274 r.w.s. 271 of the Act were issued by the AO asking to furnish explanation as to why penalty u/s 271(1)(c) of the Act should not be levied against the assessee. In reply, the assessee submitted as under:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ). Sir in the above circumstances I sincerely request that when I myself has declared the correct income and paid the tax thereon together with interest before your honour raised any question. I should not be penalised. The A.O. rejected the contentions of the assessee as the income of management bonus of ₹ 19,37,552/- was not disclosed in the return of income filed by the assessee, hence, it was observed that the assessee has furnished inaccurate particulars of income as management bonus was taxable. The A.O. accordingly levied penalty u/s 271(1)(c) of the Act being 100% of the tax evaded amounting to ₹ 6,58,573/- on an income of ₹ 19,37,552/- sought to be evaded by the assessee vide penalty order dated 30- 04-2012 passed by the AO u/s 271(1)(c) of the Act wherein learned AO held that the assessee had concealed the particulars of his income by furnishing of inaccurate particulars of income within meaning of Section 271(1)(c) of the Act. 4. Aggrieved by the penalty order dated 30-04-2012 passed by the A.O. u/s 271(1)(c) of the Act, the assessee preferred first appeal before the ld. CIT(A). The assessee , inter-alia , contended that the assessee received ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that the assessee has filed return of income declaring total income of ₹ 226,03,878/- belatedly on 26- 02-2010 u/s 139(4) of the Act while due date of filing return of income was 31-07-2009. It was submitted that the assessee is Managing Director of M/s Fairdeal Multimedia Pvt. Ltd. . The assessee became eligible for management bonus from M/s Fairdeal Multimedia Pvt. Ltd. during financial year 2009-10 based upon the performance in the preceding year i.e. financial year 2008-09 which was determined and quantified only in the month of September, 2009 when the financial accounts of M/s Fairdeal Multimedia Private Limited were finalized/audited , hence, the assessee was under a bona-fide belief that the said income from management bonus should be declared as income for the assessment year 2010-11 which is relevant to previous year 2009-10 when the quantification of bonus took place in the month of September 2009. Hence based on the said bonafide belief, the said income of ₹ 19,37,552/- from management bonus was not offered for taxation during the previous year relevant to the impugned assessment year 2009-10. It is submitted that on the income of management bonus of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd of which the penalty proceedings had been initiated, and it cannot be on a fresh ground of which tax-payer has no notice 7. The ld. D.R., on the other hand, relied upon the order of the authorities below. 8. We have considered the rival contentions and also perused the material available on record including the case laws relied upon. We have observed that the assessee is an individual and Managing Director of M/s Fairdeal Multimedia Pvt. Ltd. The assessee has received management bonus of ₹ 19,37,552/- during relevant previous year which is based upon the performance of M/s Fairdeal Multimedia Pvt. Ltd. for the financial year 2008- 09, which determination and quantification of bonus was done in the month of September 2009 based on finalized/audited financial accounts of M/s Fairdeal Multimedia Pvt. Ltd. for the financial year 2008-09 which was not offered as income for taxation by the assessee during the previous year relevant to the impugned assessment year 2009-10. We find that the said management bonus of ₹ 19,37,552/- payable to the assessee was quantified and determined only in the month of September, 2009. The said company M/s Fairdeal Multimedia Pvt. Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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