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M/s Manural Huda Trust Versus The Commissioner of Income Tax

2015 (9) TMI 1120 - KERALA HIGH COURT

Penalty proceedings under section 271(1)(c) - Held that:- Section 271(1)(c) is attracted in a case where the Assessing Officer is satisfied that any person has concealed the particulars of his income or has furnished incorrect particulars of such income. Once the Assessing Officer has arrived at such a satisfaction, he is entitled to levy, in addition to the tax payable, by way of penalty, the amount indicated in 271 (1)(iii). In addition to this, as provided in the explanation, if the person co .....

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claim except to the extent of ₹ 34.65 lakhs. This finding also has become final. Therefore, in view of the aforesaid findings against the assessee, this is a case where clause (c) of section 271(1) providing concealment of the particulars of income or furnishing of inaccurate particulars of such income is attracted. This clearly is a case to which section 271(1)(c) is attracted and the levy of penalty cannot be interfered with. Unable to accept the case of the appellant that the Tribunal .....

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ch in ITA.778/Coch/2009. 2. The appellant is a trust registered under section 12AA of the Income Tax Act. A survey under section 133A was conducted in one of the establishments of the appellant, Al-Arif Hospital, Ambalathara, Trivandrum, on 12.12.2005 and some books of accounts were impounded. Subsequently, the assessee filed its return for the year 2004-05 on 31.3.2006, showing a deficit of ₹ 1,89,38,383/-. Later, on 24.11.2006, summons was issued requisitioning some other books of accoun .....

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f ₹ 34.65 lakhs. The addition towards short collection at the hospital was upheld. There was no further challenge against the assessment proceedings and accordingly, the order has become final. 4. The Assessing Officer, thereafter, initiated proceedings under section 271(1)(c) and issued notice for the levy of penalty. Finally, penalty of ₹ 16 lakhs as against the minimum leviable penalty of ₹ 15.56 lakhs was levied. In the appeal filed by the assessee, the Appellate Commission .....

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the course of any proceedings under this Act, if the Assessing Officer is satisfied that any person has concealed the particulars of his income or furnished inaccurate particulars of such income, he may direct that such person shall, in addition to tax, if any, payable by him, pay by way of penalty a sum which shall not be less than, but which shall not exceed three times the amount of tax sought to be evaded by reason of the concealment of particulars of his income or the furnishing of inaccura .....

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the amount added or disallowed in computing the total income of such person as a result thereof shall, for the purpose of section 271(1)(c), be deemed to represent the income in respect of which particulars have been concealed. Evidently therefore, section 271(1)(c) is attracted in a case where the Assessing Officer is satisfied that any person has concealed the particulars of his income or has furnished incorrect particulars of such income. Once the Assessing Officer has arrived at such a sati .....

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sion that this Court has to examine whether the Tribunal was right in upholding the order of penalty that was passed by the Assessing Officer in exercise of his powers under section 271(1)(c) of the IT Act. 8. Admittedly, as per the Profit & Loss Account of the assessee, the collection of Al-Arif Hospital was ₹ 70,83,991/-. The account books impounded at the time of survey revealed total collection of ₹ 83,35,418/-. Evidently therefore, the assessee had not accounted the differen .....

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he assessee, this is a case where clause (c) of section 271(1) providing concealment of the particulars of income or furnishing of inaccurate particulars of such income is attracted. 10.The only explanation offered by the assessee was that its books of accounts for the relevant year were impounded by the Revenue and therefore, the correct figures of income could not be furnished as per its return of income. They also contended that on account of the impounding of the books, their accounts could .....

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ssessee. 11. In the aforesaid circumstances, this clearly is a case to which section 271(1)(c) is attracted and the levy of penalty cannot be interfered with. 12. Counsel for the appellant relied on the judgment of the Apex Court in Hindustan Steel Ltd. v. State of Orissa [(1972) 83 ITR 26] to contend that penalty will not ordinarily be imposed unless the party obliged, either acted deliberately in defiance of law or was guilty of conduct contumacious or dishonest or acted in conscious disregard .....

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