INCOME TAX APPELLATE TRIBUNAL, KOLKATA ‘C’ BENCH, KOLKATA

I.T.A. No. : 1121/ Kol/ 2011
Assessment year : 2006-2007
Assistant Commissioner of Income Tax (Appellant) vs. M/s J A Export India (P) Limited (Respondent)
Date of Order : 13-11-2015

ORDER

Per Shri Mahavir Singh, Judicial Member :

This appeal filed by the Revenue is arising out of the order of ld. Commissioner of Income Tax (Appeals), Central-III, Kolkata in Appeal No. 104/CC-XXI II/CIT(A)-CIII/09-10 dated 23.06.2011 for the assessment year 2006-07.

2. The only issue in this appeal of Revenue is against the order of ld. CIT(Appeals) deleting the penalty levied by the Assessing Officer under section 271(1)(c) of the Income Tax Act, 1961. For this, Revenue has raised following Ground No. 1:-

(1) That in the fact s and in the circumstances of the case and in law, the CIT(A) has erred in cancelling the penalty of Rs.8,51,334/- imposed under section 271(1)(c) of the Act without proper appreciation of the fact s brought on record by the AO that assessee did not f i le any return of income before the search was conducted on 04.09.2006” .

3. Brief ly stated the facts are that a search and seizure operation under section 132 of the Act was conducted on the business and residential premises of the assessee on 04.09.2006. In consequence to search, the Assessing Officer issued notice under sect ion 153A of the Act and the assessee filed return of income disclosing total income at Rs.28,37,778/-. The Assessing Officer after completing the assessment initiated the penalty proceedings under sect ion 271(1)(c) and thereby levied the penalty for the reason that the assessee failed to file details and source of other incomes so declared in the return of income.

4. Aggrieved against levy of penalty, assessee preferred appeal before the ld. CIT(Appeals), who deleted the penalty.

5. Aggrieved, now the Revenue came in appeal before the Tribunal.

6. We have heard the ld. D.R. and carefully gone through the facts and circumstances of the case. We find that the search was conducted on the business and residential premises of the assessee on 04.09.2006 and the relevant assessment year involved is 2006-07. The return in response to search was filed by the assessee on 24.11.2008 disclosing total income at Rs.28,37,778/-. We find from the case records that due date of filing of the return of income under section 139(1) was not expired at the time of search and the assessee filed return in response to notice under section 153A of the Act. We find from the facts of the case that the ld. CIT(Appeals) has categorically recorded the finding that the Assessing Officer has not detected anything, on the basis of which the undisclosed income was assessed, i.e. the undisclosed asset or incriminating documents found during the course of search, which proves that there is concealment of income by the assessee. The assessee has filed its income voluntarily and paid taxes also. We find no infirmity in the order of ld. CIT(Appeals). Hence, the same is confirmed.

7. In the result, the appeal of the Revenue is dismissed.

Order pronounced in the open Court on 13th day of November, 2015.

Sd/-                                                      Sd/-
Waseem Ahmed                       Mahavir Singh
(Accountant Member   (Judicial Member)