TMI Blog2015 (8) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... e particulars of such income. Thus the satisfaction of the Assessing Officer about the concealment of particulars of income or furnishing of inaccurate particulars of such income is essential before levying any penalty u/s 271(1) (c). The Assessing Officer as is apparent from the penalty order has not satisfied about the concealment of particulars of income or furnishing of inaccurate particulars of income on the part of the assessee. On this basis itself the penalty deleted. - Decided in favour of assessee. - ITA No. 931/KOL/2013 - - - Dated:- 4-6-2015 - Shri P. K. Bansal, AM,JJ. For the Appellant : Shri Subash Agarwal, Adv. For the Respondent : Smt. Madhumalati Ghosh, JCIT, Sr DR ORDER This appeal has been filed by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder of the authorities below. I noted that the Assessing Officer confirmed the imposition of penalty by observing as under:- On the basis of the detailed discussion above, I am of the opinion that the assessee deserves no leniency so far as this proceedings under section 271(1)(c) is concerned. His reply is not at all satisfactory and hence rej ected. The quantum of tax sought to be evaded is calculated at ₹ 64,747/-, which is the difference between quantum of tax determined in the order under section 153C/143(3) on 31.12.2010 and the tax liability shown by the assessee in his original return for this year submitted on 31.02.2008 (Rs.81,293 - ₹ 16,546). However, keeping in mind that on the date of search itself the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his sub-section be deemed to represent the income in respect of which particulars have been concealed. 5. From the perusal of the aforesaid section, it is apparent that penalty u/s 271 (1)(c) is leviable if the Assessing Officer is satisfied in the course of any proceedings under this Act that any person has concealed the particulars of his income or furnished inaccurate particulars of the income. This is the settled law that the penalty proceedings and assessment proceedings are different. The penalty proceedings can be initiated on 2 charges i.e. i) concealment of particulars of income and ii) furnishing of inaccurate particulars of income. Both the charges are entirely different. If the proceedings are initiated on charge of concealm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of income or that incorrect particulars had been furnished by the assessee with the intention to avoid payment of taxes. Assessing Officer has not made out any charge either of concealment of particulars of income or furnishing of inaccurate particulars of income. 7. The penalty u/s 271(1) (c) can be levied for either of the charge. The penalty order simply states I am satisfied that this is a fit case where provisions of section 271(1)(c) of the Income Tax Act are clearly attract. It does not state for what default penalty is levied S. 271(1) (c) (iii) is expressly clear that the penalty can be levied for concealment of particulars of income or furnishing of inaccurate particulars of income. It is the particulars of income which is the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e' might not disclose particular sales or dividend income or income from any source. Such instances would fall under the main provisions itself. In such cases, the burden is on the Assessing Officer to establish the existence of the charge on the basis of material on record. 9. Explanation 1 to section 271(1) (c) states that the amount added or disallowed in computing the total income of the assessee shall be deemed to be the income in respect of which particulars have been concealed. This deeming provision is not absolute one but is rebuttable one. It only shifts the onus on the assessee. Explanation 1 refers to the two situations in which presumption of the concealment of the particulars of income is deemed. It is not applicable wh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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