The assessee entered into an Advance Pricing Agreement (APA). Subsequently, the Assessing Officer passed a final assessment order and initiated penalty proceedings. The day after the assessment order, but within the time limit prescribed under section 92CD, the assessee filed a modified return of income in terms of the APA. Despite this, the Assessing Officer passed an order imposing a penalty for concealment of income. Granting an interim stay, the High Court held that, prima facie, there was substance in the assessee’s contention. Since the modified return was filed as permissible in law and within the prescribed period of limitation, there could not have been any event of concealment of income. Therefore, the Assessing Officer prima facie had no jurisdiction to impose the penalty.
(AY. 2013-14)