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2017 (2) TMI 1378 - HC - Income TaxLevy of penalty u/s 271(1)(c) - period of limitation - whether penalty is to be levied in piecemeal as and when the individual issues of an assessment are concluded - The question is, whether in respect to six items also period of limitation would commence from the date Tribunal passed order on 19.02.2001, when it was received by CIT or will commence when, after remand, assessment order is passed by AO in respect to two items and that order attained finality and communicated to CIT. Held that:- In the present case, if penalty was to be imposed in respect to 6 items which stood final after judgment and order dated 19.02.2001 passed by Tribunal received by CIT(A) on 14.03.2002, the limitation would come to an end after six months, i.e., 30.09.2002. The argument advanced otherwise by learned counsel for appellant (revenue), therefore, cannot be accepted. It is not the question of piecemeal penalty but when penalty is being imposed taking into account quantum of additions upheld or accepted, then statute providing limitation will have to be applied strictly in that respect. Questions-I and II, therefore, are answered against Revenue and in favour of Assessee. Levy of penalty - concealment of particulars - Held that:- Meaning of word "concealment" is to hide, to keep secret. Free concealment of particulars and income would include false deduction or exemption claimed by Assessee in his Return. The word "conceal" involves and implicit a knowledge on the part of Assessee of his real income when furnished particulars. If an income was already in the knowledge of Department, it cannot be said to be a case of concealment. An erroneous claim and deduction which was withdrawn when error was discovered cannot be said to be concealment of income and penalty cannot be imposed. - No penalty. - Decided against the revenue.
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