SONIA GOKANI - (1.)The Revenue is in appeal before this Court against the judgment of the Income-Tax Appellate Tribunal dtd. 5/3/2020 raising following question for our consideration :
"(a) Whether in the facts and circumstances of the case, learned ITAT has erred in law and on fact in deleting the penalty of levied under sec. 271(1)(c) of the Income Tax Act amounting to Rs.1,18,00,000.00 despite the fact that penalty was levied on admitted net undisclosed income of Rs.3.80 crore received as "on money", which was unearthed based on diary found and impounded by Investigation wing during survey proceedings and also admitted by one of the partners in the statement recorded u/s. 131 (1 A) of the Act and the said "on money" income was not accounted for in the regular books of account of the assessee on the date of survey?"

(2.)The Assessee a Partnership Firm was involved in the business of real estate development and construction, where it had come out with a scheme 'Shreedhar Residency' in the first year 2012- 2013. The survey under Sec. 133 (A) of the Income Tax Act, 1961 ('the Act' hereinafter) was conducted on 9/1/2013 as a part of search operations in Rashmikant Bhatt Group along with other Assessees belonging to the very group. The total disclosure was made of Rs.20.00 Cr. Of which Rs.3.80 Cr. was of the respondent firm. This was offered as an additional income of a year under survey and the return which was filed by the respondent for the Assessment Year 2013-2014 on 29/9/2013. The total income disclosed and declared was Rs.4,26,92,360.00 which was inclusive of the sum of Rs.3.80 Cr.
(3.)The Assessment Order under Sec. 143 (3) of the Act was passed by the DCIT, Central Circle 2, Vadodara on 28/12/2015 without any addition, whereby the return filed by the respondent - Assessee was accepted. However, the Assessing Officer had initiated the penalty proceedings under Sec. 271(1)(c) of the Act on the ground of concealment. The stand of the respondent- Assessee is that the amount of Rs.3.80 Cr. cannot be treated as concealed income since the same had been declared in the return filed by the Assessee which was not accepted by the assessing Officer and a penalty was imposed under Sec. 271(1)(c) of the Act at the rate of 100% tax on income to the tune of Rs.3.80 Cr.