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TMI Blog2015 (5) TMI 870X X X X Extracts X X X X X X X X Extracts X X X X ..... eduction of Rs. 93,13,296/- as per provisions of Section 80-P(2)(d) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act of 1961'). The Assessing Officer by a notice, as per provisions of Section 271(1)(c) of the Act of 1961, dated 5.12.2011 called upon the assessee respondent to explain as to why penalty be not imposed upon it for concealment of particulars of income for the assessment year 2008-09. The assessee responded the notice with assertion that it disclosed full particulars of the income and did not conceal any particulars of income, as such no action as per Section 271(1)(c) of the Act of 1961 was desirable. The Assessing Officer under the order of assessment dated 20.6.2012 imposed a penalty upon the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sh that any conscious effort was made by the assessee respondent to conceal its income. To impose a penalty as per Section 271 (1)(c) the Assessing Officer is required to get himself satisfied about existence of the conditions stated therein. Hon'ble Supreme Court in Commissioner of Income Tax v. Reliance Petroproducts Pvt. Ltd., reported in (2010) 322 ITR 158 (SC), while examining the issue as to what does concealment of particulars of income or submission of inaccurate particulars of income mean under Section 271(1) (c) of the Act of 1961, held as under:- "A glance at this provision would suggest that in order to be covered, there has to be concealment of the particulars of the income of the assessee. Secondly, the assessee must hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dal [2009) 9 SCC 589, where this court was considering the same provision, the court observed that the Assessing Officer has to be satisfied that a person has concealed the particulars of his income or furnished inaccurate particulars of such income. This court referred to another decision of this court in Union of India Vs. Dharamendra Textile Processors [2008) 13 SCC 369 as also, the decision in Union of India Vs. Rajasthan Spg. & Wvg. Mills [2009) 13 SCC 448 and reiterated in paragraph 13 that: "13. It goes without saying that for applicability of section 271(1)(c), conditions stated therein must exist." Therefore, it is obvious that it must be shown that the conditions under section 271(1)(c) must exist before the penalty is imposed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inding as to how and in what manner, the assessee had furnished the particulars of his income. The court ultimately went on to hold that the element of mens rea was essential. It was only on the point of mens rea that the judgment in Dilip N. Shroff Vs. Joint CIT was upset. In Union of India Vs. Dharamendra Textile Processors, after quoting from section 271 extensively and also considering section 271(1) (c), the court came to the conclusion that since section 271(1)(c) indicated the element of strict liability on the assessee for the concealment or for giving inaccurate particulars while filing return, there was no necessity of mens rea. The court went on to hold that the objective behind the enactment of section 271(1)(c) read with Explan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eady seen the meaning of the word "particulars" in the earlier part of this judgment. Reading the words in conjunction, they must mean the details supplied in the return, which are not accurate, not exact or correct, not according to truth or erroneous. We must hasten to add here that in this case, there is no finding that any details supplied by the assessee in its return were found to be incorrect or erroneous or false. Such not being the case, there would be no question of inviting the penalty under section 271(1)(c) of the Act. A mere making of the claim, which is not sustainable in law, by itself, will not amount to furnishing inaccurate particulars regarding the income of the assessee. Such claim made in the return cannot amount to th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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