J.B.PARDIWALA,J. - (1.) This Tax Appeal under Section 260-A of the Income Tax Act 1961 (for short "the Act, 1961") is at the instance of the Revenue and is directed against the order passed by the Income Tax Appellate Tribunal Surat Bench, Surat, dated 25.01.2019 in the ITA No. 3175/Ahd/2016 for the Assessment Year 2012-13.
(2.) The Revenue has proposed the following three substantial questions of law for the consideration of this Court: "[A] Whether on the facts and circumstances of the case and in law, the Appellate Tribunal was right in deleting the penalty of Rs. 55,15,650/- levied under section 271(1)(c) of the Act. [B] Whether on the facts and circumstances of the case and in law, the Appellate Tribunal erred in not appreciating that penalty u/s 271(1)(c) is attracted for concealment detected in the course of any proceeding under the Act, which cannot be limited to assessment proceeding and should have been held to include survey proceeding u/s 133A(1)? [C] Whether on the facts and circumstances of the case and in law, the Appellate Tribunal erred in not appreciating that even clause (a) of explanation 4 to section 271(1)(c) does not refer to returned income so as to limit the penalty u/s 271(1)(c) with reference to difference between tax on Assessed Income and Returned Income?" 
(3.) It appears form the materials on record that survey under Section 133A of the Act was carried out on 17.07.2012. In the course of the survey proceedings, the assessee firm declared unaccounted income of Rs. 1,78,50,000/- received during A.Y. 2012-13. Later, the assessee filed its return of income on 28.09.2012 declaring its total income of Rs. 2,59,11,800/- including the unaccounted income of Rs. 1,78,50,000/- disclosed during the course of the survey proceedings. The case of the assessee firm was selected for scrutiny under the CASS and notice under Section 143(2) of the Act was issued on 23.09.2013. The assessment order under Section 143(3) of the Act came to be passed on 30.03.2015 and the income was assessed at Rs. 2,59,11,800/-, meaning thereby, the returned income was accepted as the assessed income.;