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TMI Blog2016 (9) TMI 1510X X X X Extracts X X X X X X X X Extracts X X X X ..... redible and cogent explanation for not offering the income in the form of unexplained investment in property before the search operation; he was bound to agree for the quantum addition and not preferred any appeal before the first appellate authority against various additions made by the Assessing Officer. Just because the assessee has agreed for addition of undisclosed investment in property, he cannot be escaped from levy of penalty - assessee has no valid reason for concealment and furnishing inaccurate particulars in the belated return filed against the notice under section 153A of the Act. In this case, neither the assessee filed his return before due date of filing of return of income nor furnished complete particulars of income or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on filed, the ld. Counsel for the assessee has submitted that the petitioner s C.A. fell ill in the month of January, 2015 and could able to recover from his illness only in the month of May, 2015 and due to this reason, filing of appeal before the Tribunal against the first appellate order was escaped his attention and thereafter, immediately the appeal was filed on 12.05.2015. Therefore, he has pleaded that the delay in filing the appeal is neither wanton nor wilful and prayed that the delay may be condoned and the appeal is admitted for hearing. On the other hand, the ld. DR did not seriously object to the above submissions of the ld. Counsel for the assessee. We are of the considered opinion that since the assessee has sufficient cause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sing Officer has initiated penalty proceedings under section 271(1)(c) of the Act. 3.1 During the course of penalty proceedings, the assessee has filed his submissions dated 18.06.2012 on 21.06.2012. In his reply, the assessee has submitted that out of the three additions made, the assessee has agreed for the addition made on unexplained investment to the tune of ₹.60 lakhs to have amicably settled with the Department. It was further submitted before the Assessing Officer that the salary and wages and story discussion expenses are inevitable expenses to be incurred by a leading comedian in the cine field. 3.2 After considering the submissions of the assessee, the Assessing Officer has observed that the assessee has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment in property of ₹.60 lakhs for levy of penalty which was un justified since it is settled law that merely because assessee raised claims which were eventually disallowed in the instant case, in an adhoc manner by the Assessing Officer does not mean that ingredients of clause (c) to section 271(1) were satisfied so as to justify imposition of penalty. Therefore, by sustaining the penalty levied towards undisclosed investments, the ld. CIT(A) has deleted the penalty levied with regard to expenses towards salaries and wages and story writing and partly allowed the appeal filed by the assessee. 5. On being aggrieved, the assessee is in appeal before the Tribunal and the ld. Counsel for the assessee has submitted that the dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... offering the income in the form of unexplained investment in property before the search operation; he was bound to agree for the quantum addition and not preferred any appeal before the first appellate authority against various additions made by the Assessing Officer. Just because the assessee has agreed for addition of undisclosed investment in property, he cannot be escaped from levy of penalty. Factually, the assessee has no valid reason for concealment and furnishing inaccurate particulars in the belated return filed against the notice under section 153A of the Act. In this case, neither the assessee filed his return before due date of filing of return of income nor furnished complete particulars of income or even after service of noti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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