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2016 (9) TMI 9 - HC - Income TaxPenalty levied u/s 271(1)(c) - assessee had furnished inaccurate particulars of the income - Held that:- The assessee – company was in its first year of incorporation subjected to survey operation. At the time when the due date for filing return had not expired. During the survey the assessee admitted certain bogus share application money to the tune of ₹ 5.86 crores. Before the expiry of the due date for filing return, assessee also filed a return making matching disclosures. The Assessing Officer made no additions in this income but, desired to levy penalty on the ground that the assessee had furnished inaccurate particulars of the income. To our mind, such penalty could not have been imposed as rightly held by the Tribunal. Section 271 of the Act provides for penalty. Clause (c) of sub-section (1) of Section 271 of the Act provides that if the Assessing Officer during the course of any proceeding under the Act is satisfied that any person has concealed the particulars of his income or furnished inaccurate particulars of such income, he may direct such person to pay by way of penalty which shall not be less than, but which shall not exceed three times the amount of tax sought to be evaded by the reason of concealment of particulars or furnish inaccurate particulars of such income. As noted, the revenue desired to bring in the element of the assessee having furnished inaccurate particulars of its income. The fact that the assessee did make a disclosure of such income in the return filed and the Assessing Officer was not dissatisfied by such disclosure is not in dispute. The assessee having filed the return by the due date for filing return, in which such income was also offered to tax, the question of assessee having furnished inaccurate particulars of the income would not arise. - Decided in favour of assessee.
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