2009 (4) TMI 499 - AT - Income Tax

Penalty - Concealment - Revised return - Carry forward of losses - Deduction u/s 10A - appellant admitted that the revised return of income was in fact filed by it after considering retrospective amendment introduced by the Finance Act, 2003 in the provisions of s. 10A(6) with effect from asst. yr. 2001-02 by an undertaking eligible for deduction under s. 10A - There is a school of thought, however, to the effect that to successfully impose penalty under s. 271(1)(c) of the Act, the burden of the Revenue is not discharged simply by demonstrating that the above conditions are satisfied and that the Revenue must also establish mens rea on the part of the assessee

On account of penalty under s. 271(1)(c), only consequences in the civil law, i.e., payment of a specified amount as damages or as compensation, follow, but on account of penalty under s. 276C, consequences under criminal law, i.e. loss of individual liberty by jail sentence, follow - It is thus clear that a mere contravention of statutory obligation is enough to trigger the penalty provision, but then there has to be a contravention of the statutory obligation first-wilful or not - It is not of scriptural sanctity but of ratio-wise luminosity within the edifice of facts where the judicial lamp plays the legal flame - Appeal is allowed