ITA NO 6781 OF 2010 VIRENDRA M SHANKLESHA MUMBAI PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL 'F' BENCH, MUMBAI BEFORE SHRI R.S. PADVEKAR, JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER ITA NO. 6781/MUM/2010 (ASSESSMENT YEAR: 2007-08) DCIT CENTRAL CIRCLE-1 VIRENDRA M SHANKLESHA PAWAR INDL.ESTATE 201,2 ND FLOOR MUTHA HOUSE 2 ND FLOOR, EDULJI ROAD OPP:WELCOME HOTEL CHARAI THANE (E) VS SHIVAJI CHOWK, KALYAN(W) MUMBAI 400601 MUMBAI 421 301 PAN NO: ADRPS 0270 N APPELLANT RESPONDENT REVENUE BY: MR. D.S. SUNDAR SINGH, DR ASSESSEE BY: MR. PIYUSH CHHAJED DATE OF HEARING: 13/03/2012 DATE OF PRONOUNCEMENT: 21/03/2012 O R D E R PER B. RAMAKOTAIAH, A.M. THIS IS REVENUE APPEAL AGAINST THE ORDER OF THE CIT (A)1, THANE ABOUT THE DELETION OF PENALTY UNDER SECTION 2 71(1)(C) OF ` .6,22,284/-. 2. BRIEFLY STATED, THERE WAS A SEARCH & SEIZURE OPERA TION CARRIED OUT IN THE PREMISES OF THE ASSESSEE ON 7/12/2006. D URING THE COURSE OF SEARCH, THE ASSESSEE ADMITTED UNDER SECTI ON 132(4) AN ADDITIONAL INCOME OF ` .16,29,501/- BEING INVESTMENT IN UNACCOUNTED STOCK OF GOLD/SILVER ORNAMENTS. THEREAF TER, THE ASSESSEE FILED A RETURN OF INCOME ON 31/10/2007, AD MITTING A TOTAL INCOME OF ` .31,29,149/-, INCLUDING THE ADMITTED INCOME. THE ASSESSING OFFICER FINALIZED THE ASSESSMENT UNDER SE CTION 143(3) R.W.S. 153A ON 31/12/2008 ACCEPTING THE INCOME RETU RNED AND INITIATED PENALTY PROCEEDINGS UNDER SECTION 271(1)( C). THE ASSESSING OFFICER LEVIED THE PENALTY ON THE REASON THAT THE A SSESSEE HAD DISCLOSED THIS ADDITIONAL INCOME ONLY AFTER SEARCH/ SURVEY ACTIONS ITA NO 6781 OF 2010 VIRENDRA M SHANKLESHA MUMBAI PAGE 2 OF 3 WERE CONDUCTED. HE ALSO NOTICED THAT THE ASSESSEE H AS NOT EXPLAINED THE MANNER IN WHICH SUCH INCOME HAS BEEN DERIVED. CONSEQUENTLY PENALTY UNDER SECTION 271(1)(C) WAS WA RRANTED. THE ASSESSING OFFICER RELIED ON THE DECISION OF THE ITA T IN THE CASE OF A.P.SAHGAL VS. ACIT, 081 TTJ 917. THE CIT (A) CONSI DERED THE AVERMENTS OF THE ASSESSEE AND ALSO THE FACT THAT ON THE DATE OF SEARCH, RETURN OF INCOME WAS NOT DUE AND THEREFORE, RETURN FILED AFTER THE SEARCH ADMITTING THE INCOME DECLARED UNDE R SECTION 132(4) CANNOT BE CONSIDERED AS CONCEALED INCOME AS THE ASS ESSEE PAID THE TAXES AND WAS ENTITLED FOR BENEFIT OF IMMUNITY AVAI LABLE AS PER EXPLANATION 5(2)(B) TO SECTION 271(1)(C). CONSEQUEN TLY THE CIT (A) DELETED THE PENALTY. 3. WE HAVE HEARD THE LEARNED DEPARTMENTAL REPRESENTATI VE AND THE LEARNED COUNSEL. CONSIDERING THE FACTS OF THE C ASE AND THE REASONS GIVEN BY THE CIT (A), WE DO NOT SEE ANY REA SON TO INTERFERE WITH THE ORDER OF THE CIT (A). THE ASSESSEE FILED T HE RETURN OF INCOME DISCLOSING THE INCOME WHICH WAS OFFERED IN THE COUR SE OF SEARCH AND THE RETURN WAS NOT DUE WHEN THE SEARCH OPERATIONS H AVE TAKEN PLACE ON 7.12.2006. THE ASSESSEE RETURNED INCOME AN D PAID THE TAXES THEREFORE, THERE CANNOT BE ANY CONCEALMENT OF INCOME OR FURNISHING OF INACCURATE PARTICULARS, ONCE THE RETU RN OF INCOME WAS FILED ON DUE DATE AND WAS ACCEPTED AS SUCH. ACCORDI NGLY, WE AFFIRM THE ORDER OF THE CIT (A) AND DISMISS THE REVENUE AP PEAL. 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS D ISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 21 ST MARCH, 2012. SD/- SD/- ( R.S. PADVEKAR ) (B. RAMAKOTAIAH) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED 21 ST MARCH, 2012. VNODAN/SPS ITA NO 6781 OF 2010 VIRENDRA M SHANKLESHA MUMBAI PAGE 3 OF 3 COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CONCERNED CIT(A) 4. THE CONCERNED CIT 5. THE DR, F BENCH, ITAT, MUMBAI BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCHES, MUMBAI