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TMI Blog2023 (11) TMI 288X X X X Extracts X X X X X X X X Extracts X X X X ..... . 143(1)(a) - As per provisions of section 270A(3)(i)(a) of the Act as there was no difference between the amount of income assessed and amount of income determined u/s. 143(1)(a) of the Act, there was no case of under reporting of income as per provisions of section 270A(2) and (3) of the Act. With regard to misreporting of income as per provisions of section 270A(9), the Tribunal observed that the case of the assessee does not fall in any of the clauses specified at (a to f). Neither any misrepresentation of suppression of facts has occurred nor there was any false entries in the books of accounts as mentioned in various clauses of 270A(9). During the year under consideration search was carried out at the premises of the third party ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting that this case of misreporting of income under Section 270A(8) and 270A(9) of the Act? 3. For the sake of brevity and convenience, facts of Tax Appeal No. 649 of 2023 are taken for consideration: 3.1 During the year under consideration, the assessees Shri Prafulbhai Fuletra and Shri Dinesh Fuletra had entered into land sale transactions in respect of several properties with total sale consideration of Rs. 46,08,000/- as per the registered sale deeds. During the year under consideration, a blue coloured calendar diary was found during the course of search at the premises of Shri Rajnikant Bhesdadia, who is the brother-in- law of the assessee and his brother. This diary contained details of cash receipts of Rs. 4,20,60,000/- as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ocuments presented before the sub-registrar. Therefore, the on-money receipts of Rs. 4,20,60,000/- would have remained unaccounted in the books of the assessee, in case the search would not have been made at the premises of Shri Rajnikant Bhesdadia. Therefore, as per the AO this was a case of misreporting of income under subsection (8) and (9) of section 270A of the Act. Further, the AO held that the assessee has not offered any bona-fide explanation to the satisfaction of AO. 3.3 In appeal before Ld. CIT(Appeals), the assessee contended that no search proceedings was carried out at the premises of the assessee. However, on the basis of seized papers at the residence of Shri Rajnikant Bhesdadia i.e. at third party premises, who is the br ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der consideration, the accounts of the assessee were not finalised and there was still time for the assessee to file return of income. Accordingly, the addition amount offered to tax was reflected in the return of income filed by the assessee on 08-03-2018. 4. Reading the order of the Tribunal would indicate that the Tribunal while confirming the order of the CIT(A) found that the conditions specified in Section 270A of the Act could not be invoked and so also regarding levy of penalty. The Tribunal noticed that the case is not covered under the provisions of section 270A(2)(a) of the Act for the reason that the income assessed and the income processed u/s. 143(1)(a) are same or in other words, income assessed was not greater than the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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