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2019 (2) TMI 658 - KERALA HIGH COURTPenalty imposed under Section 271(1)(c) - excessive claim of wastage - block assessment u/s 153A - Held that:- We need only refer to Section 271(1)(c) which not only speaks of concealment of particulars of income but also furnishing inaccurate particulars of such income. The additions made, to the extent confirmed by this Court, definitely leads to a finding of inaccurate particulars having been furnished which would enable invocation of Section 271(1)(c). We hence answer the said questions of law against the assessee and in favour of the Revenue. The order of penalty was passed after the Tribunal's order in the assessment was received, within the limitation period, noticing that the Tribunal had upheld the block assessment made by the Assessing Officer. The penalty order passed also has now been upheld by us and the contention of limitation rejected. This Court, in the assessment, modified the additions in favour of the assessee. Hence, if the limitation under the proviso to sub-section (1A) is said to operate, there could be no modification made of the order passed under Section 271 based on the order of the High Court. This would only be detrimental to the assessee since otherwise the assessee would have to pay the penalty as imposed in the impugned orders without the benefit of the modification being made available to the assessee. We do not think that the intention of the legislature was to prohibit the assessee from getting the benefit of an order in appeal before the higher authorities for reason only of the Department having not acted with expediency. We, hence, reject the said contention also and answer the first question against the assessee and in favour of the Revenue, which in fact would enure to the benefit of the assessee by enabling revision of penalty, as per the judgment of the High Court.
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