ITAT upheld penalty as AO had recorded deemed satsifaction
ITAT upheld penalty as AO had recorded deemed satsifaction
In search action Rs 3.2 crores was seized from assessee. She stated she had sold ancestral propoperty for Rs 3.4 crores. In response to notice u/s 153A (of Income Tax Act, 1961) she furnished return of income. AO held that assessee had not declared sale consideration in her original return of income and had concealed income. AO imposed penalty. CIT(A) confirmed AO’s order. ITAT upheld penalty as AO had recorded deemed satsifaction before initiating penalty proceedings.-500557
1. In search and seizure action Rs 3.2 crores was seized from the assessee.
2. Assessee states she had sold ancestral propoperty at Delhi to one Mr. Sunil Nandra for Rs.3,40,00,000.
3. The assessee, in response to notice u/s 153A (of Income Tax Act, 1961) furnished return of income declaring total income of Rs.2,04,91,850.
4. AO in the assessment proceedings initiated, issued notices u/s 143(2) (of Income Tax Act, 1961)/142(1).
5. AO held that the assessee had not declared the sale consideration in her original return of income and subsequently after the search, had declared total amount of capital gains and hence, had concealed the particulars of income.
6. AO initiated penalty proceedings u/s 271(1)(c) (of Income Tax Act, 1961).
7. CIT(A) dismissed the assessee’s appeal.
On appeal, the ITAT held as under:
8. The above said finding of the Assessing Officer is the deemed satisfaction recorded by the Assessing Officer before initiating penalty proceedings under section 271(1)(c) (of Income Tax Act, 1961) and in view thereof, we find no merit in the plea of the assessee in this regard.
9. The case of the assessee is squarely covered by the provisions of Explanation 5A to section 271(1)(c) (of Income Tax Act, 1961) and the assessee is exigible to levy of penalty on such income which was detected during the course of search and seizure operation, which in turn has been offered by the assessee in return of income filed pursuant to notice issued under section 153A (of Income Tax Act, 1961).
10. We uphold the order of CIT(A) in confirming the levy of penalty.
Case Reference - Mrs.Sarita Kaur Manjeet Singh Chopra Vs. The Income Tax Officer.
IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH "B", PUNE
BEFORE MS. SUSHMA CHOWLA, JM AND SHRI PRADIP KUMAR KEDIA, AM
ITA No. 1562/PN/2013
(Assessment Year : 2009-10)
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