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Surya Prakash Bagla A.Yr.2010-11

3.The brief facts of this issue is that the assessee filed his original return of income for the Asst Year 2010-11 u/s 139(1) of the Act on 15.9.2010 declaring total income of Rs 2,74,57,560/-. Later he filed a revised return of income on 27.12.2010 declaring revised total income of Rs 10,15,47,560/-. The main sources of income of the assessee was under the heads income from house property, capital gains and other sources like dividend and interest from bank etc. He was one of the working partners of a partnership firm M/s Saltee Estate which was subjected to tax audit u/s 44AB of the Act during the year. As such the due date of filing the return of income for the assessee (being a partner in a firm) u/s 139(1) of the Act was 30.9.2010. Hence the revised return filed u/s 139(5) of the Act on 27.12.2010 was a valid revised return. A search was conducted u/s 132 of the Act on 25.2.2009 and subsequent dates at the residence of the assessee and also at the business premises of his group companies. Pursuant to the search, search assessments for the Asst Years 2003-04 to 2008-09 were completed u/s 143(3) / 153A of the Act on 31.12.2010, whereas the regular assessment for the Asst Year 2009-10 was completed u/s 143(3) of the Act on 31.12.2010. Number of additions were made in those assessments which were agitated by the assessee before the ld CITA and the said appeals were disposed off by a consolidated order dated 6.8.2012 for the Asst Years 2003-04 to 2009-10 in Appeal Nos. 236 to 242/CC- VII/CIT(A), C-I/Kol/2010-11 by the ld CITA granting certain relief.

5. For that in view of the facts and circumstances of the case the Ld. CIT(A) is wholly wrong and unjustified in confirming the above penalty u/s 271(1)(c) without considering the basic fact that the income of Rs. 7,40,90,000/- (representing the advance/earnest money received earlier out of the total revised sale consideration of Rs. 14,01,00,000/- against the sale of said shares in May, 2009) was duly disclosed & declared in the revised return for the A.Y. 2010-11 voluntarily & validly filed u/s 139(5) on 27.12.2010 after the original return was filed u/s 139(1) on 15.09.2010 within the due date and furthermore the tax on the entire capital gain on such sale which includes the said sum of Rs. 7,40,90,000/- was paid in full even before the due date filing the return u/s 139(1).