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2013 (12) TMI 63 - AT - Income TaxConcealment of Income - Penalty u/s 271(1)(c) - While filing return of income for the assessment year under consideration, the assessee has not disclosed the correct value of closing stock and it has resulted into escapement of income which was liable to tax to the extent of non-inclusion of re-purchase price of the five flats - Held that:- The assessee filed return for assessment years 2005-06 and 2006-07, the years in which the said five flats were sold and the assessee computed profit on sale of those flats - Penalty under the said provision is civil liability - Willful concealment is not an essential ingredient for attracting civil liability - The assessee has not furnished the accurate, or correct particulars of his income particularly when the assessee debited the expenditure on account of purchase of the flats and when the said flats had not been sold at the end of accounting year relevant to the assessment year, the cost of flats was required to be included as part of the closing stock - The ld. CIT(A) was correct in his view that the assessee cannot claim that the same was omitted due to bonafide mistake considering the fact that the assessee had debited the expenditure and the accounts of the assessee are audited by Chartered Accountants - Simultaneous entry has to be made in the books to give corresponding effect in the closing stock to prepare a true and correct balance sheet. On account of whose mistake, the amounts claimed as deductions in this case were not added, while computing the income of the assessee-company. - The assessee is a company which must be having professional assistance in computation of its income, and its accounts are compulsorily subjected to audit - The account of the assessee of not including the re-purchase value of the flats in question in the closing stock is not only incorrect in law but the explanation offered by the assessee is not escaped by Explanation (1) to section 271(1)(c ) of the Act - Decided against assessee.
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