MOHANAN Vs. DEPUTY COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The appellant calls in question the order passed by the Income Tax Appellate Tribunal, Cochin Bench (Annexure-D). By the same the appeal filed by the appellant against the order passed by the Commissioner of Income Tax (Appeals) confirming the order of penalty under S. 158BFA(2) of the Income Tax Act, 1961, has been affirmed. A search and seizure was taken under S. 132 of the Act in the case of appellant's wife at her premises on 26.2.2003. During the course of search, certain documents and diaries, cash, fixed deposits etc., were seized. Block assessment under S. 158BC was completed in her case. During the course of said search at the premises of wife of the appellant, certain documents and diaries pertaining to the appellant was found and seized. Proceedings under S. 158BD were initiated by way of issuance of notice under S. 158BC read with S. 158BD of the Income Tax Act. In response, the assessee filed return in Form No. 2B on 25.4.2005 declaring the undisclosed income as 'Nil'. The assessment was completed. Thereafter the officer decided to issue notice for imposing penalty under S. 158BFA(2). The appellant filed objections. Over ruling the objections, the Officer imposed penalty at the minimum amount of Rs. 9.95 lakhs. It is the said order that has been affirmed by the First Appellate Authority and also the Tribunal. Hence the appeal. The question of law which is raised for consideration in this appeal is as follows:

(2.) We heard learned counsel for the appellant and the learned Senior Government Pleader for Revenue.

(3.) Learned counsel for the appellant submits that there is no basis for imposing penalty. According to him, the appellant had filed revised return for the assessment years in question on 26.6.2003. Therefore, there is no basis for imposing penalty. He would further contend that on perusal of the relevant proviso, the appellant is justified in contending that penalty proceedings will not lie against the appellant.