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ITAT upheld penalty levied with reference to original return of income
ITAT upheld penalty levied with reference to original return of income
Assessee’s return was processed u/s 143(1). Subsequently, in assessee’s search, assessee’s undisclosed bank accounts were detected with unexplained cash. AO reopened assessment. Assessee replied he had already filed return admitting the additional income. AO completed assessment, and imposed penalty. CIT(A) sustained penalty. ITAT upheld penalty as it was levied with reference to original return of income, and not consequent to disclosure.-500612
1. Assessee individual was a Sales Tax Practitioner by profession.
2. He filed return of income disclosing an income of Rs. 2,99,263.
3. This return was processed u/s 143(1).
4. Assessee admitted 'income from house property' and 'income from profession' in the said return.
5. In a search of assessee at Hyderabad airport, 27 undisclosed bank accounts of assessee were detected in which unexplained negative cash balance came to Rs 9,16,321.
6. AO initiated proceedings u/s 147 and notice u/s 148 was issued.
7. Assessee replied that he had already filed return of income admitting additional income of Rs. 9,16,321.
8. AO completed assessment determining the total income at Rs.12,15,580.
9. AO initiated penalty proceedings u/s. 271(1)(c), and imposed penalty.
10. CIT(A) sustained the penalty.
On appeal, the ITAT held as under:
11. It is trite law that voluntary disclosure does not release assessee from mischief of penal proceedings.
12. Law does not provide that when assessee returns a voluntary disclosure of his concealed income, he has to be absolved from penalty.
13. As already stated, the penalty is levied with reference to original return of income and not with reference to the assessment made consequent to the disclosure by assessee.
14. In view of this, I uphold the order of penalty for the above reasons.
Case Reference - S.L. Shiva Raj vs The Deputy Commissioner of Income Tax.
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES "A" (SMC), HYDERABAD
BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER
I.T.A. No. 1002/HYD/2015
(Assessment Year: 2002-03)
