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2017 (9) TMI 44 - GUJARAT HIGH COURTPenalty u/s 271(1)(c) - Assessee had earlier not filed the return - subsequently filed return in response to notice u/s 148 - Return accepted by AO without any enhancement - Held that:- Unamended Explanation 3 to section 271(1) provides that when any person “who has not been previously assessed under this Act” fails without reasonable cause to furnish return within the time specified in sub-section (1) of Section 153 required to be furnished under section 139 and until expiry of such period no notice has been issued under sub-section (1) of section 142 or section 148 and the Assessing Officer or the Commissioner (Appeals) is satisfied that in respect of such assessment year such person has taxable income then such person shall for the purpose of clause (c) of sub-section (1) be deemed to have concealed the particulars of his income notwithstanding that such person furnishes a return at any time after the expiry of the aforesaid period, in pursuance of a notice under section 148 of the Act. Also with effect from 01.04.2003 said explanation omitted the group of words “who has not previously been assessed under this Act”. Assessee opens up his arguments in assessment year 2002-03 and his case is that he had not previously been assessed to tax since he had only agricultural income not taxable under the provisions of the Act. In absence of an explanation providing for a deeming fiction of concealment of income the case of the assessee would not be covered under the laid provision and since as held by the Tribunal, unamended Explanation 3 also did not cover the case of the assessee, the penalty was rightly deleted. - Decided in favour of assessee.
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