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2013 (2) TMI 552 - AT - Income TaxPenalty u/s 271(1)(c) - whether the assessee has properly disclosed all material facts relating to the taxability of the compensation in its return of income filed for the relevant assessment years - held that:- When the assessee has been so specific in respect of one item, which he has treated as capital receipt and also given the reason why it has treated the amount as capital receipt, the assessee could have also included the compensation so received in its computation of income and then could have claimed exemption from tax. It is also not known on what basis the assessee has claimed the compensation so received as exempt from tax because the Auditors have given a simple Note that the company is advised that such compensation being in the nature of capital receipt can be directly brought to the capital reserve, without giving any basis for such opinion. Assuming, yet denying, that this is the proper disclosure, then every assessee will credit income/ Receipts directly to its capital account and claim that it has properly disclosed the income. Whereas the requirement is that there should be a proper disclosure in the return of income. - As the assessee has failed to disclose the compensation received from DBA, it is a fit case for the levy of penalty for concealment of income and also for filing of inaccurate particulars of its income. Relying upon the decision of Supreme Court in CIT v. Reliance Petro Products Pvt. Ltd. [2010 (3) TMI 80 - SUPREME COURT] held that, the return of income is the only document where the assessee can furnish his particulars of income, whereas in the instant appeal, the appellant company has not disclosed the receipt of compensation received from DBA in its return of income nor in the computation of income accompanied with the return of income. - Penalty confirmed.
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