Om Muruga Earth Movers, Udamalpet V. ITO, Pollachi

ITA 545/CHNY/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 7902 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 11 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-02-2016
• Appeal Filed By: Assessee
• Bench Allotted: D
• Assessment Year: 2006-2007
• Appeal Filed On: 07-03-2014
• Court: TRIBUNAL
• Department Lawyers: DR B NISCHAL
• Assessee Lawyers: T BANUSEKAR
• Keywords: Business income; Depreciation
• Section: 143(3); 133A; 147; 148; 6

Judgement Text

, , IN THE INCOME - TAX APPELLATE TRIBUNAL D BENCH, CHENNAI , . , BEFORE SHRI CHANDRA POOJARI , ACCOUNTANT MEMBER & SHRI DUVVURU RL REDDY , JUDICIAL MEMBER I.T.A.NO S . 545 AND 546/MDS/2014 ASSESSMENT YEAR S : 200 6 - 0 7 AND 2007 - 08 M/S. OM MURUGA EARTH MOVERS, C - 37, K.V.R. STREET, GANDHI NAGAR (PO), UDUMALPET. [PAN: A A AAO1420F ] VS. THE INCOME TAX OFFICER , WARD I ( 1 ) , POLLACHI . ( / AP PELLANT ) ( / RESPONDENT ) / APPELLANT BY : SHRI T. BANUSEKAR, C.A. / RESPONDENT BY : DR. B. NISCHAL , J CIT / DATE OF HEARING : 23 . 0 2 .201 6 / DATE OF P RONOUNCEMENT : 29 . 0 2 .201 6 / O R D E R PER DUVVURU RL REDDY , JUDICIAL MEMBER : BOTH THE APPEAL S FILED BY THE SAME ASSESSEE ARE DIRECTED AGAINST THE SEPARATE ORDER S OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) I , C OIMBATORE , DATED 1 6 . 0 1 . 20 1 4 RELEVANT TO THE ASSESSMENT YEAR S 200 6 - 0 7 AND 2007 - 08 PASSED UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT, 1961 [ ACT IN SHORT]. THE ONLY EFFECTIVE GROUND RAISED IN BOTH THE APPEAL S OF THE ASSESSEE IS WITH REGARD TO CONFIRMATION OF PENALTY LEVIED UNDER SECTION 271(1) (C) OF THE ACT. I.T.A. NO S . 545 & 546 /M/ 14 2 2. BRIEF FACTS OF TH E CASE ARE THAT THE ASSESSEE AOP HAS FILED ITS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2006 - 07 BELATEDLY ON 15.09.2009 ADMITTING A TOTAL INCOME OF .1,46,232/ - . SINCE THIS IS A SURVEY RELATED CASE, A NOTICE UNDER SECTION 148 WAS ISSUED ON 15.12.2009, IN RESPONSE TO WHICH, SHRI S.V. NATARAJAN, ONE OF THE AOPS APPEARED ON 18.01.2010 AND REQUESTED TO TREAT THE RETURN ALREADY FILED ON 15.09.2009 AS PROPE R COMPLIANCE TO THE NOTICE ISSUED UNDER SECTION 148 OF THE ACT. SUBSEQUENTLY, A NOTICE UNDER SECTION 143(2) OF THE ACT WAS ALSO ISSUED ON 14.10.2010. 3. A SURVEY UNDER SECTION 133A OF THE ACT WAS CONDUCTED IN THE BUSINESS PREMISES OF M/S. RAJ & CO. AT 3 4, KALYANI NAGAR, GANDHI NAGAR, UDUMALPET ON 12.01.2007 IN WHICH SHRI S.V. NATARAJAN [ONE OF THE ASSESSEE AOPS] IS THE MANAGING DIRECTOR. DURING THE COURSE OF SURVEY, SOME DIARIES CONTAINING NOTING BY SHRI S.V. NATARAJAN FOR HAVING LET OUT JCB ON HIRE AND VOUCHERS RELATING TO RECEIPTS OF JCB HIRE CHARGES FOR THE MONTHS OF NOVEMBER 2006 AND DECEMBER 2006, AN EXPENDITURE STATEMENT FOR THE RESPECTIVE MONTHS, ETC. WERE INTER ALIA FOUND AND IMPOUNDED. A SWORN STATEMENT WAS ALSO RECORDED FROM SHRI S. V . NATARAJAN BASED ON THE FINDINGS IN THE ABOVE DAIRIES AND DOCUMENTS. IN THE STATEMENT, SHRI S. V . NATARAJAN HAD ADMITTED INTER ALIA THAT THE BUSINESS OF LETTING JCB WAS DONE ALONG WITH 2 OTHERS IN THE NAME AND STYLE OF M/ S OM MURUGA EARTH MOVERS. HOWEVER, AS THE FIRM WAS NOT REGISTERED, 1/3 RD SHARE OF HIS INCOME WILL BE OFFERED IN HIS 'INDIVIDUAL I.T.A. NO S . 545 & 546 /M/ 14 3 CAPACITY. BASED ON THE I NVOICES FOUND FOR THE MONTHS OF NOVEMBER AND DECEMBER 2006 AND CORRESPONDING EXPENDITURE, A NET INCOME OF .7,50,000/ - PER ANNUM WAS WORKED OUT FROM THE JCB BUSINESS. IN THE STATEMENT, SHRI S. V . NATARAJAN, HA S ALSO AGREED TO OFFER .2,50,000/ - PER ANNUM AS HIS SHARE OF INCOME. HOWEVER, SHRI S. V . NATARAJAN DID NOT FILE HIS 'INDIVIDUAL' R ETURN. INSTEAD, SHRI S. V . NATARAJAN HA S FILED A R ETURN IN THE STATU S OF AOP IN THE NAME AND STYLE OF ' OM MURUGA EARTH MOVERS'. 4. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSEE AOP FURNISHED A STATEMENT OF PROFIT & LOSS ACCOUNT, BALANCE SHEET AND SUBMITTED A LETTER REQUESTING TO CONSIDER ITS CLAIM FOR D EPR ECIATION AND B ANK I NTEREST AND OTHER ADDITIONAL EXPENSES. IT WAS OBSERVED IN R ETURN OF I NCOME FILED, THE ASSESSEE HA S ADMITTED INCOME AT . 1,46,232/ - , WHEREAS IN THE PROFIT & LOSS ACCOUNT FILED AT THE TIME OF SCRUTINY THE I NCOME WAS OFFERED AT . 1 ,67,396/ - . HOWEVER, AS THE ASSESSEE WAS NOT ABLE TO PROVE THE EXPENSES CLAIMED IN THE PROFIT & LOSS ACCOUNT, THE NET JCB INCOME ESTIMATED AT THE T IME OF SURVEY, I.E. .7,50,000/ - PER ANNUM WAS ADOPTED IN THE ASSESSMENT. IN THE PROFIT & LOSS ACCOUNT FILED, THE ASSESSEE HAD CLAIMED D EPRECIATION AT THE RATE OF 30%. IN THIS REGARD, THE ASSESSEE HAS FILED THE ORIGINAL P URCHASE B ILL IN RESPECT OF JCB IN T HE NAME OF ONE SHRI RAMASAMY, O NE OF THE AOPS. THE ASSESSEE HAS ALSO FURNISHED COPY OF CORPORATION BANK A CCOUNT S TATEMENT IN SUPPORT OF ITS CLAIM FOR PAYMENT OF I NTEREST TOWARDS THE L OAN OBTAINED FOR THE I.T.A. NO S . 545 & 546 /M/ 14 4 PURCHASE OF JCB. CONSIDERING THE ABOVE AND ALSO THAT THE PAYMENT OF I NTEREST TOWARDS B ANK L OAN AND THE CLAIM OF D EPRECIATION WAS NOT TAKEN INTO ACCOUNT AT THE TIME OF SURVEY WHILE ARRIVING AT .7,50.000/ - PER ANNUM, THE SAME WAS CONSIDERED IN THE ASSESSMENT AND THE T AXABLE I NCOME WAS WORKED OUT AT .5,14,640/ - . ACCORDINGLY, THE ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) R.W. S . 147 OF THE ACT ON 31.12.2010 AND A TOTAL D EMAND OF .2,07,559/ - WAS RAISED. 5 . SUBSEQUENTLY, P ENALTY PROCEEDINGS UNDER SECTION 271( 1 )(C) ACT WERE INITIATED AT THE TIME OF COMPLETION OF ASSESSMENT AND A N OTICE U NDER SECTION 274 R.W.S. 271 OF THE ACT WAS SERVED ON THE ASSESSEE ON 31.12.2010. THE ASSESSEE HAS NOT FILED ANY REPLY / SUBMISSION TO THE PENALTY N OTICE. HOWEVER, THE ASSESSEE APPEARED FOR THE HEARING ON 13.06.2011 AND SIMPLY REQUESTED TO DROP THE PENALTY PROCEEDINGS WITHOUT OFFERING ANY EXPLANATION OR WRITTEN SUBMISSION AND THE ASSESSEE WAS ALSO ASKED TO DO SO. INSPITE OF THE ABOVE, THE ASSESSEE HAS NOT FURNISHED ANY EXPLANATION / SUBMISSION. THEREFORE, THE ASSESSING OFFICER LEVIED PENALTY @ 200% OF TAX SOUGHT TO BE EVADED . SIMILARLY, FOR THE ASSESSMENT YEAR 2007 - 08 ALSO THE ASSESSING OFFICER LEVIED PENALTY @ 200% . 6. THE ASSESSEE CARRIED THE MATTERS IN APPEAL FOR BOTH THE ASSESSMENT YEARS. AFTER CONSIDERING THE SUBMISSION AND FACTS OF THE CASE, THE LD. CIT(A) I.T.A. NO S . 545 & 546 /M/ 14 5 DIRECTED THE ASSESSING OFFICER TO RESTRICT THE PENALTY TO 100% OF THE TAX PAYABLE FOR BOTH THE ASSESSME NT YEARS. 7. AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL FOR BOTH THE ASSESSMENT YEARS. 8. BEFORE US, THE LD. COUNSEL FOR THE ASSESSEE, BY RELYING ON THE GROUNDS OF APPEAL, SUBMITTED THAT THE ASSESSING OFFICER HAS DETERMINED THE BUSINESS INCOME ON THE BASIS OF ESTIMATES AND THEREFORE, PENALTY UNDER SECTION 271(1)(C) OF THE ACT IS NOT WARRANTED. 9. ON THE OTHER HAND, THE LD. DR STRONGLY SUPPORTED THE ORDER PASSED BY THE LD. CIT(A). 10. WE HAVE HEARD BOTH SIDES, PERUSED THE MATERIALS ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. IN THIS CASE, THE ASSESSEE M/S. OM MURUGA EARTH MOVERS WAS NEITHER A REGISTERED FIRM NOR RETURN OF INCOME HAS BEEN FILED VOLUNTARILY OR ONE OF THE ASSESSEE A OP SHRI S.V. NATARAJAN FILED HIS RETURN IN HIS INDIVIDUAL CAPACITY, WHEN HE WAS DOING JCB HIRE BUSINESS. IT IS AN ADMITTED FACT THAT THE ASSESSEE HAS NEVER FILED ANY RETURN OF INCOME. IN ACCORDANCE WITH THE PROVISIONS OF INCOME TAX ACT, THE ASSESSEE SHOULD HAVE FILED ITS RETURN OF INCOME FOR TH E ASSESSMENT YEAR 2006 - 07 ON OR BEFORE 31.07.2006 UNDER SECTION 139(1) OF THE ACT. HOWEVER, THE ASSESSEE HAS NOT FILED ANY RETURN. WHEN A SURVEY UNDER SECTION 133A OF THE ACT WAS I.T.A. NO S . 545 & 546 /M/ 14 6 CONDUCTED IN THE BUSINESS PREMISES OF M/S. RAJ & CO. ON 12.01.2007 IN WHICH S HRI S.V. NATARAJAN [ONE OF THE ASSESSEE AOPS] IS THE MANAGING DIRECTOR, SOME DIARIES CONTAINING NOTING BY SHRI S.V. NATARAJAN FOR HAVING LET OUT THE JCB ON HIRE AND VOUCHERS RELATING TO RECEIPTS OF JCB HIRE CHARGES FOR THE MONTHS OF NOVEMBER 2006 AND DECEM BER 2006, AN EXPENDITURE STATEMENT FOR THE RESPECTIVE MONTHS, ETC. WERE INTER ALIA FOUND AND IMPOUNDED. A SWORN STATEMENT WAS ALSO RECORDED FROM SHRI S. V . NATARAJAN BASED ON THE FINDINGS IN THE ABOVE DAIRIES AND DOCUMENTS. IN THE STATEMENT, SHRI S. V . NATA RAJAN HAD ADMITTED INTER ALIA THAT THE BUSINESS OF LETTING JCB WAS DONE ALONG WITH 2 OTHERS IN THE NAME AND STYLE OF M/ S OM MURUGA EARTH MOVERS. BASED ON THE INVOICES FOUND FOR THE MONTHS OF NOVEMBER 2006 AND DECEMBER 2006 AND CORRESPONDING EXPENDITURE, A NET INCOME OF .7,50,000/ - PER ANNUM WAS WORKED OUT FROM THE JCB BUSINESS IN THE ABSENCE OF FILING RETURN OF INCOME ADMITTING TAXABLE INCOME VOLUNTARILY. WHEN THE ASSESSEE WAS ASKED TO FILE THE RETURN IN HIS INDIVIDUAL CAPACITY, HE HAS NOT FILED THE RETUR N OF INCOME INSTEAD, HE FILED THE RETURN IN THE STATUS OF AOP ON 15.09.2009 FOR THE ASSESSMENT YEAR S 2006 - 07 AND 2007 - 08 ADMITTING INCOME OF .1,46,232/ - , WHEREAS, IN THE PROFIT AND LOSS ACCOUNT FILED AT THE TIME OF SCRUTINY , THE INCOME WAS OFFERED AT .1, 67,396/ - FOR THE ASSESSMENT YEAR 2006 - 07 AND 2,17,794/ - FOR THE ASSESSMENT YEAR 2007 - 08 . EVEN AFTER SURVEY, THE ASSESSEE HAS NOT IMMEDIATELY FILED ITS RETURN FOR THE ASSESSMENT YEAR 2006 - 07. AS THE ASSESSEE WAS NOT ABLE TO PROVE THE I.T.A. NO S . 545 & 546 /M/ 14 7 EXPENSES CLAIMED IN THE PROFIT AND LOSS ACCOUNT, THE NET JCB INCOME ESTIMATED AT THE TIME OF SURVEY I.E., .7,50,000/ - PER ANNUM WAS ADOPTED IN THE ASSESSMENT. AFTER ALLOWING DEPRECIATION @ 15%, THE ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) R.W.S. 147 OF THE ACT. 11. PE NALTY PROCEEDINGS UNDER SECTION 271(1)(C) OF THE ACT WERE INITIATED AND NOTICE UNDER SECTION 274 R.W.S. 271 OF THE ACT WAS SERVED ON THE ASSESSEE ON 31.12.2010. THE ASSESSEE HAS NOT FILED ANY REPLY TO THE PENALTY NOTICE, BUT APPEARED ON 13.06.2011 AND SIMP LY REQUESTED TO DROP THE PENALTY PROCEEDINGS, WITHOUT OFFERING ANY EXPLANATION. ACCORDINGLY, THE ASSESSING OFFICER LEVIED PENALTY UNDER SECTION 271(1)(C) OF THE ACT @ 200% AND ON APPEAL, THE LD. CIT(A) RESTRICTED THE PENALTY @ 100%. 12. IN THIS CASE, T HOUGH THE ASSESSEE WAS ENGAGED IN THE JCB HIRE BUSINESS, NO RETURN OF INCOME WAS FILED UNTIL A SURVEY WAS CONDUCTED IN THE BUSINESS PREMISES OF M/S. RAJ & CO. ON 12.01.2007 IN WHICH SHRI S.V. NATARAJAN [ONE OF THE ASSESSEE AOPS] IS THE MANAGING DIRECTOR. W HEN SOME DIARIES CONTAINING NOTING BY SHRI S.V. NATARAJAN FOR HAVING LET OUT JCB ON HIRE AND VOUCHERS RELATING TO RECEIPTS OF JCB HIRE CHARGES FOR THE MONTHS OF NOVEMBER 2006 AND DECEMBER 2006, AN EXPENDITURE STATEMENT FOR THE RESPECTIVE MONTHS, ETC. WERE INTER ALIA FOUND AND IMPOUNDED DURING THE COURSE OF SURVEY, SHRI S.V. NATARAJAN WAS ASKED TO FILE RETURN IN HIS IN DIVIDUAL CAPACITY. HOWEVER, HE HAS NOT FILED THE RETURN, BUT FILED THE RETURN I.T.A. NO S . 545 & 546 /M/ 14 8 IN THE STATUS OF AOP ON 15.09.2009. IF THE SURVEY UNDER SECTION 133A OF THE ACT WAS NOT CONDUCTED, THE BUSINESS OF THE ASSESSEE AND HIS INCOME WOULD NOT HAVE COME INTO LIGHT. IN THE RETURN FILED ON 15.09.2009 FOR BOTH THE ASSESSMENT YEARS , THE ASSESSEE HAS ADMITTED INCOME OF .1,46,232/ - BUT AT THE TIME OF SCRUTINY, IN THE PROFIT AND LOSS ACCOUNT, THE ASSESSEE HAS OFFERED INCOME AT .1,67,396/ - FOR THE ASSESSMENT YEAR 2006 - 07 AND 2,17,794/ - FOR THE ASSESSMENT YEAR 2007 - 08 , IN FACT, THE ASSESSEE HAS NOT FILED ANY REVISED RETU RN FOR BOTH THE ASSESSMENT YEARS OFFERING INCOME AS PER PROFIT AND LOSS ACCOUNT BEFORE COMPLETING THE ASSESSMENT. THEREFORE, IT IS A CLEAR CASE OF CONCEALMENT OF PARTICULARS OF INCOME WITHIN THE MEANING OF SECTION 271(1)(C) OF THE ACT. 13. THE CONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE THAT SINCE THE INCOME OF THE ASSESSEE WAS DETERMINED ON THE BASIS OF ESTIMATES, NO PENALTY CAN BE LEVIED IS NOT ACCEPTABLE. BECAUSE, FIRST OF ALL, THE ASSESSEE HAS NOT DISCHARGED ITS DUTY TO FILE ITS RETURN OF INCOME WI THIN THE DUE DATE FOR FILING UNDER INCOME TAX ACT AND SECONDLY, BASED ON THE INVOICES FOUND FOR THE MONTHS OF NOVEMBER AND DECEMBER, 2006 AND CORRESPONDING EXPENDITURE IMPOUNDED DURING THE COURSE OF SURVEY, A NET INCOME OF .7,50,000/ - PER ANNUM WAS WORKED OUT FROM THE JCB BUSINESS. W E ARE NOT IN A POSITION TO HOLD THAT THE ESTIMATION OF INCOME IS NOT CORRECT AND IT COULD BE FIT FOR LEVY OF PENALTY AS HELD BY THE HON BLE GUJARAT HIGH COURT IN THE I.T.A. NO S . 545 & 546 /M/ 14 9 CASE OF A.M. SHAH VS. CIT [1999] 238 ITR 415 , WHEREIN IT WAS HELD THAT INCOME WAS ESTIMATED ON THE BASIS OF GROSS PROFIT, THE PENALTY COULD NOT BE DELETED. FURTHER THE HON BLE MADRAS HIGH COURT IN THE CASE OF CIT VS. S. KRISHNASWAMY & SONS [1996] 219 ITR 157 , WHEREIN IT WAS HELD THAT IT CANNOT BE SAID THAT WHENEVER THERE IS AN ESTIMATED INCOME, THERE IS NO SCOPE FOR HOLDING THAT THE ASSESSEE HAS CONCEALED INCOME. U NDER THE ABOVE FACTS AND CIRCUMSTANCES, WE FIND THAT THE LD. CIT(A) HAS RIGHTLY RESTRICTED THE PENALTY UNDER SECTION 271(1)(C) OF THE ACT AT 100% AGAINST 2 00% LEVIED BY THE ASSESSING OFFICER. THUS, WE FIND NO INFIRMITY IN THE ORDER PASSED BY THE LD. CIT(A). ACCORDINGLY, THE APPEAL FILED BY THE ASSESSEE FOR THE ASSESSMENT YEAR 2006 - 07 IS DISMISSED. 1 4 . FOR THE ASSESSMENT YEAR 2007 - 08 , THE LD. COUNSEL FOR T HE ASSESSEE HAS SUBMITTED THAT THE RETURN OF INCOME HAS BEEN FILED IN TIME AND PLEADED TO DELETE THE PENALTY LEVIED UNDER SECTION 271(1)(C) OF THE ACT FOR THE ASSESSMENT YEAR UNDER CONSIDERATION . 15. THE ASSESSEE WAS ENGAGED IN THE JCB HIRE BUSINESS AND NO RETURN OF INCOME WAS FILED UNTIL A SURVEY WAS CONDUCTED UNDER SECTION 133A OF THE ACT IN THE BUSINESS PREMISES OF M/S. RAJ & CO. ON 12.01.2007 IN WHICH SHRI S.V. NATARAJAN [ONE OF THE ASSESSEE AOPS] IS THE MANAGING DIRECTOR. SINCE THIS IS A SURVEY RELA TED CASE, NOTICE UNDER SECTION 148 OF THE ACT WAS ISSUED ON 15.12.2009. SHRI S.V. NATARAJAN, ONE OF THE AOPS APPEARED ON 18.01.2010 I.T.A. NO S . 545 & 546 /M/ 14 10 AND REQUESTED TO TREAT THE RETURN FILED ON 15.09.2009 AS PROPER COMPLIANCE TO THE NOTICE ISSUED UNDER SECTION 148 OF THE ACT . SUBSEQUENTLY, A NOTICE UNDER SECTION 143(2) OF THE ACT WAS ISSUED ON 14.10.2010. IN THE RETURN OF INCOME, THE ASSESSEE HAS ADMITTED AN INCOME OF .1,46,232/ - , WHEREAS, ON PERUSAL OF THE PROFIT AND LOSS ACCOUNT, AT THE TIME OF SCRUTINY, THE ASSESSING OFFICER FOUND THAT THE ASSESSEE HAS SHOWN THE INCOME AT .2,17,794/ - . FROM THE ABOVE, IT CAN BE DEDUCED THAT THE ASSESSEE HAS BEEN CONCEALING ITS TRUE INCOME PARTICULARS, DESPITE THE ASSESSEE WAS GIVEN SUFFICIENT OPPORTUNITIES BY THE ASSESSING OFFICER DURING THE COURSE OF PENALTY PROCEEDINGS , THE ASSESSEE COULD NOT SUBMIT ANY EXPLANATION AGAINST THE PENALTY NOTICE . THEREFORE, THE ASSESSING OFFICER LEVIE D PENALTY @ 200%, WHICH WAS, ON APPEAL, RESTRICTED TO 100% BY THE LD. CIT(A). 16. IT IS A CLEAR CASE OF CONCEALMENT OF INCOME. THE ASSESSEE HAS ADMITTED AN INCOME OF .1,46,232/ - IN THE RETURN FILED ON 15.09.2009 FOR THE ASSESSMENT YEAR 2007 - 08 . BUT THE PROFIT AND LOSS ACCOUNT SHOWS THE INCOME AT .2,17,794/ - . IN VIEW OF THE ABOVE, THE SUBMISSION OF THE LD. COUNSEL FOR THE ASSESSEE THAT THE ASSESSEE HAS FILED THE RETUR N IN TIME FOR THE ASSESSMENT YEAR 2007 - 08 AND NO PENALTY SHOULD BE LEVIED IS NOT ACCEPTABLE SINCE FILING OF RETURN UNDER SECTION 139(1) OR 139(4) ARE NOT SUBJECT MATTER UNDER SECTION 271(1)(C) OF THE ACT . WHETHER THE ASSESSEE HAS CONCEALED THE PARTICULARS OF INCOME AND FURNISHED INACCURATE PARTICULARS OF INCOME IS THE I.T.A. NO S . 545 & 546 /M/ 14 11 SUBJECT MATTER UNDER SECTION 271(1)(C) OF THE ACT. IN THIS CASE, THE ASSESSEE IS NOT REGULARLY ASSESSED TO INCOME TAX. BUT FOR SURVEY UNDER SECTION 133A OF THE ACT , THE ASSESSEE WOULD NOT HAVE FILED THE RETURN OF INCOME , THEREFORE, THE QUESTION OF FILING THE RETURN OF INCOME IN TIME OR NOT DOES NOT ARISE AND MOREOVER, PENALTY UNDER SECTION 271(1)(C) OF THE ACT WAS LEVIED BY THE ASSESSING OFFICER FOR A CLEAR CASE OF CONCEALMENT OF INCOME AND FUR NISHING OF INACCURATE PARTICULARS OF INCOME. UNDER THE ABOVE FACTS AND CIRCUMSTANCES, THE PENALTY LEVIED UNDER SECTION 271(1)(C) AND RESTRICTED TO THE EXTENT OF 100% BY THE LD. CIT(A) FOR THE ASSESSMENT YEAR 2007 - 08 STANDS CONFIRMED AND THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. 1 7 . IN THE RESULT, BOTH THE APPEALS FILED BY THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED ON THE 29 TH FEBRUARY, 201 6 AT CHENNAI. SD/ - SD/ - (CHANDRA POOJARI) ACCOUNTANT MEMBER ( DUVVURU RL REDDY ) JUDICIAL MEMBER CHENNAI, DATED, THE 29 .02 .201 6 VM/ - / COPY TO: 1. / APPELLANT , 2. / RESPONDENT , 3. ( ) / CIT(A) , 4. / CIT , 5. / DR & 6. / GF.