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2021 (11) TMI 575 - HC - Income TaxLevy of penalty u/s 271 (1) (c) on "estimated income” by the assessing authority - HELD THAT:- Section 271(1)(c) deals with levy of penalty in case where any person has concealed the particulars of his income or furnished inaccurate particulars of such income resulting in evasion of tax - what is the penalty payable - whether on total tax assessed or on the tax evaded by the assessee. The Tribunal treated the penalty amount - The plain meaning of the section leads to the conclusion that the criteria for determination of penalty is the tax sought to be evaded but not the total tax payable by the assessee. As already noticed from the computation statement in Annexure-A the total tax payable by the assessee - The difference of tax is lesser than that which was found to have been evaded by the assessee - the penalty shall be quantified or qualified by such figures. For the said purpose, we are persuaded not to remit the matter to any of the authorities. From the details available in the record, we have heard the counsel on the quantum of penalty, it has been stated that penalty of 100% works out to ₹ 5,62,918/-. As noted at the beginning of our discussion, the questions of law involve consideration of Section 271(1)(c) of the Act and the error of fact in appreciating what is the actual tax sought to be evaded by the assessee. The discussion is concluded by holding that the penalty is determined on the amount of tax sought to be evaded, by the concealment of income etc.., but not on the total tax chargeable on the assessee. - Decided in favour of assessee.
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