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2016 (12) TMI 355 - HC - Income TaxLevy of penalty under Section 271(1)(c) - whether this was a case of bonafide mistake and not a case of conscious concealment or furnishing of inaccurate particulars? - Held that:- This is not a case where the Assessee has made full and complete disclosure of all facts and its claim on facts as disclosed has not been accepted. This is a case where the Assessee has filed inaccurate particulars of income which led to concealment of income chargeable to tax. It is also to be noted that in absence of reopening of the Assessment by the Assessing Officer on detection of non inclusion of ₹ 34 lakhs as a part of its closing stock, the aforesaid amount would have escaped income to tax. This is so as the Appellant – Assessee had not even made any attempt to file a revised return prior thereto or even suo motu bring it to be notice of the Assessing Officer that there was mistake in filing original return and tax on ₹ 34 lakhs is payable. The Supreme Court in Union of India and Others Vs. Dharmendra Textile Processors and Others [2008 (9) TMI 52 - SUPREME COURT] has held that Section 271(1)(c) of the Act indicate an element of strict liability on the assessee for concealment or filing inaccurate income. Wilful concealment is not an essential ingredient for attracting civil liability of penalty as is the case in prosecution under Section 276C of the Act. The Court held that penalty under Section 271(1)(c) of the Act is in the nature of civil liability and mensrea is not necessary. The decision cited by the petitioner of the Kerala High Court in India Sea Foods (1995 (2) TMI 9 - KERALA High Court) is no longer good law in view of the Supreme Court's decision in Dharmendra Textile Processors (supra). Thus all authorities have come to concurrent findings of fact that the Appellant – assessee has filed inaccurate particulars of the income. - Decided against assessee
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