No Penalty to be levied if extra income is declared by revising ITR, within time limitation
The relevant extract of Judgement is given below:
9. The provisions of section 271 ( 1 ) ( c) of the Act are penal in nature and they are required to be strictly construed. These cannot be extended by way of liberal interpretation to include the cases, which otherwise, do not fall within the purview and scope of the provisions of section 271 ( 1 ) ( c) of the Act. In view of this, since the income of Rs. 41 , 55 , 876 /- has already been declared in the revised return, which was valid and filed within the limitation period prescribed for filing the same, hence, in view of our discussion made above, the penalty in respect of the aforesaid income declared is not leviable and the same is accordingly ordered to be deleted.
10. So far as the difference of an amount of Rs. 2 , 00 , 015 /- between the income shown in the revised return and the amount actually received in the bank account of the assessee is concerned, the Ld. Counsel for the asssessee could not address convincing arguments in this respect. The said difference between the amount offered for taxation and the amount actually received by the assessee was found by the A. O. during the assessment proceedings. Hence, there was concealment of income in respect of the aforesaid amount. Hence the penalty in respect of the income detected during scrutiny assessment proceedings amounting to Rs. 2 , 00 , 015 /- is confirmed @ 100 % of the income tax amount sought to be evaded on the said income. In view of our findings given above, the appeal of the assessee is treated as partly allowed.
11. In the result, the appeal of the assessee is partly allowed.
Order pronounced in the Open Court on 01 . 07 . 2019 .