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2022 (2) TMI 1064 - HC - Income TaxOffence u/s 276(c)(1) and 277 - petitioner filed incorrect Income Tax Returns declining loss of business - Seizure of documents in search proceedings - HELD THAT:- During search, some documents were seized by the respondent. On verification, it was found that the loss accounted was not corroborated with the books of account and also found that the books of account of his business were not properly maintained by the petitioner. On assessment of notice, the petitioner filed revised Income Tax Returns and also paid the penalty - deletions made in the assessment was purely on the basis of difference of opinion as to the estimates and not a case of concealment of income or even furnishing of inaccurate particulars of income. To attract the provisions of Section 276C prosecution has to establish that the accused willfully attempted in any manner to evade any tax, penalty or interest chargeable or imposable under the Act. To attract the provisions of Section 277 of the Act, the prosecution is required to establish that the accused made a statement in any verification under the Act, which he either knows or believes to be false, or does not believe to be true. Presumption under Section 132(4)(a) of the Act is with regard to the books of account or the other documents found in possession of a person from whom it is seized. The same presumption shall not apply for offence, under Section 276(c) and 277 of the Act. There is no act of concealment on the part of the assessee. The gravamen of indictment relates to filing of incorrect return and making wrong verification of the statements filed in support of the return, resulting in initiation of penalty proceedings. Admittedly, in this case, it is only wrong calculation of the loss sustained in his business, which is not supported by the books of account or other documents. The petitioner paid the penalty as early as on 23.04.2014. Three years thereafter, show cause notices were issued to the petitioner. In these cases, the entire payments paid by the petitioner and there is no intention to evade payment. The Assessment Orders shows that only penalty was levied for wrong calculation of loss and no concealment of income, penalty paid in the year 2014. In this case, there is no material to show that there was any deliberate and conscious evasion of tax on the part of the petitioner. In this case, there is no concealment of income. - Decided in favour of assessee.
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