The assessee filed return of income declaring a huge loss. Pursuant to the search and seizure operations u/s.132 and issuance of notice u/s.153A, assessee revised the loss return declaring as nil income. Assessment was completed on the NIL income only.
The AO observed that the conduct of the assessee initially declaring a huge loss which was reduced substantially pursuant to the notice u/s. 153A and subsequent revision declaring nil income amounts to concealment of income by filing inaccurate particulars, Therefore, he levied penalty u/s. 271(1) © being 100% of the tax sought to be evaded.
The ITAT observed that when the revised return pursuant to the notice u/s.153A validly revised and the assessment completed accepting the revised return then no penalty could be initiated. Further there is no incriminating documents, asset or income found during the course of search which leads to the concealment or furnishing inaccurate particulars of income. Further held that the return of income filed in response to notice under section 153(A) is termed as return filed under section 139 and officer made assessment on said revised return and the penalty is to be levied on the income assessed over and above the income returned under section 153A of the Income-tax Act. if any. (AY 2009-10 to 2013–14)
Held in the case of M/s. OSE Infrastructure Ltd. vs. ACIT, ITA No.5895/Del/2015, dt.14–8-2018, (Del)(Trib.)