|CORAM:||R. C. Sharma (AM), Sanjay Garg (JM)|
|CATCH WORDS:||concealment of income, furnishing inaccurate particulars of income, surrender|
|COUNSEL:||Rashmikant C. Modi|
|DATE:||April 8, 2015 (Date of pronouncement)|
|DATE:||April 24, 2015 (Date of publication)|
|FILE:||Click here to view full post with file download link|
|S. 271(1)(c): Surrender of income after questionnaire does not mean it is not voluntary. If surrender is on condition of no penalty and assessment is based only on surrender and not on evidence, penalty cannot be levied|
At the time of surrender itself contention of not initiating any penalty proceedings was there. No additional matter was discovered to prove that there was concealment of income. The AO has included the amount of share capital in the total income of assessee merely on the basis of assessee’s declaration/surrender. The AO did not point out or refer any evidence or material to show that the amount of share capital received by the assessee was bogus. It is also not the case of the revenue that material was found at the assessee’s premises to indicate that share application money received was an arranged affair to accommodate assessee’s unaccounted money. Thus there was no detection by the AO that share capital was not genuine. The surrender of share capital after issue of the notice u/s.143(2) could not lead to any inference that it was not voluntary.