|CORAM:||Amit Shukla (JM), D. Karunakara Rao (AM)|
|CATCH WORDS:||admission of undisclosed income, concealment of income, furnishing inaccurate particulars of income, penalty, survey|
|COUNSEL:||Dr. K. Shivram, Rahul Hakani|
|DATE:||June 19, 2014 (Date of pronouncement)|
|DATE:||November 17, 2014 (Date of publication)|
|FILE:||Click here to download the file in pdf format|
|S. 271(1)(c): No penalty can be levied solely on the basis of admission made during survey if there is no corroborative evidence & no fault is found with the return of income|
Though the assessee offered a sum of Rs. 1 crore during the survey on account of discrepencies, errors and omissions in the accounts, at the stage of the assessment, there is no reference to any incriminating material found during the course of survey consequent upon which the assessee was cornered to surrender the said sum of Rs. 1 crore. Mere admission by the assessee in the statement given during the course of survey itself cannot be a conclusive piece of evidence, unless, such a surrender is corroborated by any evidence or materials discovered during the course of such survey proceedings or by any enquiry thereafter. The amount which was surrendered during the course of such survey has already been reconciled and disclosed in the regular books of account which has been subjected to audit. These audited statements of accounts were filed along with the return of income under section 139(1). It is an undisputed fact that at the time of survey, which was conducted on 29th March 2007, the return of income for the assessment year 2007-8, was not due, as the due date for filing of the return of income u/s 139(1) for the assessment year 2007-08, was 31st October 2007. The assessee had duly disclosed all the particulars of its income in the return of income and the assessment was completed without finding any defect either In the audited statement of account or in the books of account produced before him. The question whether there is any concealment of income or furnishing of inaccurate particulars of income has to be determined on the basis of the return of income as held in SAS Pharmaceuticals 335 ITR 259 (Del).