TMI Blog2009 (10) TMI 589X X X X Extracts X X X X X X X X Extracts X X X X ..... 271(1)(c) which lays down a presumption against the assessee in case of non-filing of return within a particular time is not applicable to interest-tax proceedings- How- ever, de hors of section 271(1)(c), section 13 does provide the grounds and procedure for levy of penalty - In case the Assessing Officer is convinced that the assessee has concealed particulars of chargeable interest or has furnished inaccurate particulars penalty can be levied - accordingly decide the question in favour of the Revenue and remand the case to the Assessing Officer who shall determine the question as to whether the assessee is liable to pay penalty. - 33 of 2006 - - - Dated:- 28-10-2009 - DEEPAK GUPTA, AHUJA V. K., JJ. JUDGMENT Deepak Gupta J. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cted the contention of the assessee on the following grounds : "(i) The assessee failed to file return of chargeable interest voluntarily by due date, i.e., December 31, 1992. It filed return declaring chargeable interest at Rs. 7,18,86,395 on February 19, 1996 in response to notice under section 10 of the Interest-tax Act, 1974. (ii) At the time of assessment, the chargeable interest has been determined at Rs. 16,63,05,388 against chargeable interest returned at Rs. 7,18,86,395. (iii) From the assessee's reply dated August 9, 2002, it is clear that the assessee has not filed any appeal against the assessment order dated February 5, 2002, and has accepted the amount of chargeable interest determined at Rs. 16,63,05,388 by the As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e interest-tax sought to be evaded and accordingly imposed penalty of Rs. 1,49,67,486. The appeal filed by the assessee was partly allowed and the penalty was reduced from three times the tax evaded to an amount equal to the tax evaded i.e., from 300 per cent. to 100 per cent. The assessee again filed an appeal challenging the imposition of the penalty itself. This appeal was allowed by the Income-tax Appellate Tribunal. The relevant portion of the order of the Income-tax Appellate Tribunal reads as follows : "11. When we compare the provisions of section 13 of the Interest-tax Act, 1974 and Explanation 3 to section 271(1)(c), it is observed that there is no such provision under the Interest-tax Act, 1974 corresponding to Explanation 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hould have been remanded to him to determine the question as to whether the penalty is leviable in terms of section 13 of the Interest-tax Act or not. The Tribunal could not have set aside the entire order on this ground alone. 7. Section 13 of the Act provides that penalty which shall not be less than the amount of tax sought to be evaded but shall not exceed three times the amount of tax sought to be evaded, can be levied in case the assessee has oncealed particulars of chargeable interest or has furnished inaccurate particulars of such interest. The provision of section 271(1)(c) which lays down a presumption against the assessee in case of non-filing of return within a particular time is not applicable to interest-tax proceedings. H ..... X X X X Extracts X X X X X X X X Extracts X X X X
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