2009 (7) TMI 22 - HC - Income Tax

Penalty u/s 271(1)(C) – Whether mandatory – whether decision of Supreme Court in the matter of Union of India v. Dharmendra Textile Processors [2008 -TMI - 31520 - SUPREME COURT] to be following in each case – held that The judgment of the Hon’ble Supreme Court in cannot be read as laying down that in every case where particulars of income are inaccurate, penalty must follow. What has been laid down is that qualitative difference between criminal liability under section 276C and penalty under section 271(1) ( c) had to be kept in mind and approach adopted to the trial of a criminal case need not be adopted while considering the levy of penalty. Even so, concept of penalty has not undergone change by virtue of the said judgment. Penalty is imposed only when there is some element of deliberate default and not a mere mistake. – Penalty is not imposable in the present case.