Kshitij Interiors Pvt. Ltd. Vs. DCIT- Circle

Parties Involved

Facts Summary

The assessee, Kshitij Interiors Pvt. Ltd., is a company engaged in interior decoration works. For the Assessment Year 2017-18, the assessee filed its original return of income declaring total income of Rs. 1,61,91,500/-. A survey action under section 133A of the Income-tax Act was conducted at the business premises of the assessee on 22.09.2016, during which the assessee declared cash receipts of Rs. 1,56,00,000/-. This amount was subsequently offered to tax in the return of income filed for A.Y. 2017–18. The assessment was completed by the Assessing Officer under section 143(3) by accepting the returned income without any addition. The penalty proceedings under section 270A were initiated on the premise that the income of Rs. 1,56,00,000/- was declared as a consequence of the survey and that the assessee would not have declared the said income but for the survey action.…

Legal Issues

• 1. Whether the lower authorities erred in holding that the assessee had willfully and knowingly under-reported their income liable to penalty under Section 270A of the Act.
• 2. Whether the lower authorities erred in invoking the provisions of S. 270A(9)(a) on the allegation of misrepresentation or suppression of facts.
• 3. Whether the lower authorities erred in holding that the assessee’s income was assessed for the first time and thereby erred in computing the penalty as per the provisions of section 270A(10) of the Act.
• 4. Whether the lower authorities erred in levying penalty of Rs. 1,03,15,656/- as per the provisions of section 270A(8) of the Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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