RAGHURAM HUME PIPES PRIVATE LIMITED,GUNTUR vs. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-2(1), GUNTUR

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ITA 233/VIZ/2024Status: DisposedITAT Visakhapatnam07 March 2025AY 2016-17Bench: the Ld. CIT(A). Before the Ld.CIT(A), the assessee has made similar submissions and accepted voluntarily the low profits declared while filing the original return of income and thereafter filed the return of income in response to the notice U/s.148 of the Act admitting the income accepted during the survey proceedings. The Ld. CIT(A) considered that the assessee has failed to account for its income while filing the original return of income U/s.139(1) of the Act and thereafter, confirmed th12 pages

AI SummaryAllowed

Facts

The assessee company, engaged in contract work, filed its original return for AY 2016-17. Post a survey U/s. 133A, it filed a revised return U/s. 148, admitting higher income to avoid litigation. The Assessing Officer (AO) accepted the revised income but initiated penalty proceedings U/s. 271(1)(c) for concealment, which was upheld by the CIT(A).

Held

The tribunal held that no penalty U/s. 271(1)(c) can be imposed as the assessee made a complete disclosure of additional income in the revised return, and there was no actual concealment or furnishing of inaccurate particulars. Penalty cannot be based on surmises, especially when no corroborative evidence was brought on record by the AO to prove that the surrender was not voluntary.

Key Issues

Whether penalty U/s. 271(1)(c) is leviable when additional income is voluntarily disclosed in a revised return after a survey, and whether the penalty notice was valid if it did not specify the limb of Section 271(1)(c).

Sections Cited

133A, 147, 148, 143(2), 142(1), 143(3), 271(1)(c), 274(2), 139(1), 250, Explanation-3 to Section 271(1)(c), Explanation-5 to Section 271(1)(c), Explanation-5A to Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, VISAKHAPATNAM BENCH, VISAKHAPATNAM

Before: SHRIK NARASIMHA CHARY, HON’BLE & SHRI S BALAKRISHNAN, HON’BLE

For Appellant: CA प्रत्यधथी की ओर से/

For Respondent: Dr. Aparna Villuri, Sr. AR

Hearing: 11/02/2025Pronounced: 07/03/2025

आदेशकीप्रनतनलनपअग्रेनर्त/Copy of the order forwarded to:- ननधधाऩरती/ The Assessee–Raghuram Hume Pipes Private Limited C/o. 1. Ranjit & Associates, CA, G-1, Vishwateja Apartments, 9/2, Arundalpet, Guntur-522002, Andhra Pradesh. रधजस्व/The Revenue –Assistant Commissioner of Income Tax, Circle- 2. 2(1), Guntur. 3. The Principal Commissioner of Income Tax, आयकरआयुक्त (अपील)/ The Commissioner of Income Tax 4. नवभधगीयप्रनतनननध, आयकरअपीलीयअनधकरण, नवशधखधपटणम/ DR,ITAT, 5. Visakhapatnam गधर्ाफ़धईल / Guard file 6.

आदेशधनुसधर / BY ORDER

Sr. Private Secretary ITAT, Visakhapatnam