TMI Blog2016 (7) TMI 323X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of the asssessee is different from the penalty imposed on account of concealment of income or filing inaccurate particulars of income and that certain disallowance/addition could legally be made in the assessment proceedings on the preponderance of probabilities but no penalty could be imposed u/s. 271(1)(c) of the Act on the preponderance of probabilities and Revenue has to prove that the claim of expenses by the assessee was not genuine or was inflated to reduce its tax liability. Further merely because additions have confirmed in appeal or no appeal has been filed by assessee against additions made, it cannot be the sole ground for coming to the conclusion that assessee has concealed any income. Considering the aforesaid facts, we are of the view that in the present case no case for levy of penalty u/s. 271(1)(c) of the Act has been made out. We thus direct the deletion of penalty u/s. 271(1)(c) of the Act - Decided in favour of assessee - IT (SS) A Nos. 442 & 445/Ahd/2012, IT(SS)A Nos. 32 to 35/Ahd/2016 - - - Dated:- 31-5-2016 - Shri Anil Chaturvedi, Accountant Member And Shri S. S. Godara, Judicial Member For the Revenue : Shri Jagdish, CIT-D.R. For the Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cular No. 21 of 2015), no Department appeals are to be filed against relief given by ld. CIT(A) before the Income Tax Tribunal unless the tax effect, excluding interest exceeds ₹ 10 lacs and it further states that the instructions will apply retrospectively to the pending appeals. In the present cases, since it is an undisputed fact that on the demands which are in dispute in various appeals of Revenue, the tax effect is less than ₹ 10 lacs and in the absence of any material on record by the Revenue to demonstrate that the issues in the present appeals are covered by exemptions specified in clause (8) of the CBDT Circular, we are of the view that the monetary limit prescribed by the instructions of the aforesaid CBDT Circular would be applicable to the present appeals of the Department and therefore the present appeals of Revenue are not maintainable on account of low tax effect. However, later on if it is found that there is any error in the computation of the tax effect involved or if for any reason, the aforesaid CBDT Circular is not applicable, it would be open to the Revenue to seek revival of the appeal. We, therefore, dismiss the appeals of Revenue without expres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 377; 42,500/-. The addition was based on the notings from seized paper (page No.45) which has been discussed in Assessment order. The penalty order discusses the issue in details. The AO has imposed penalty in this search case at ₹ 26,392/- which is in relation to the differential amount i.e. income returned by appellant and income confirmed by CIT(A). Also on quantum addition which was deleted by the CIT(A), Department is in ITAT and appeal is pending. The working of penalty is contained in para-6 of penalty order so far as addition stand on this date. The appellant in this case has not come out clearly with important facts even in the return of income. Hence the intention is not a bonafide and mens-rea is not ruled out in this search case. As per various pronouncements by the different Hon'ble Courts, penalty of concealment cannot be imposed because the assessee has taken a particular stand or had preferred an interpretation which was plausible and reasonable, but has not been accepted, unless the assessee had not disclosed facts before the authorities. Such cases have to be distinguished from cases where the claim of the assessee is farcical or farfetched. Dubious and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gone through the orders of the authorities below. The issue in the present case is with respect to levy of penalty u/s.271(1)(c) of the Act on the addition that have been upheld by the ld.CIT(A). The penalty under s. 271(l)(c) of the Act is leviable if the AO is satisfied in the course of any proceedings under the Act that any person has concealed the particulars of his income or furnished inaccurate particulars of such income. 9.1. The necessary ingredients for attracting Explanation 1 to Section. 271(l)(c) are that: (i) the person fails to offer the explanation, or (ii) he offers the explanation which is found by the AO or the ld. CIT(A) or the ld. CIT to be false, or (iii) the person offers explanation which he is not able to substantiate and fails to prove that such explanation is bona fide and that all the facts relating to the same have been disclosed by him. If the case of any assessee falls in any of these three categories, then according to the deeming provision provided in Explanation 1 to Section. 271(l)(c) the amount added or disallowed in computing the total income shall be considered as the income in respect of which particulars have been concealed, for the purpos ..... X X X X Extracts X X X X X X X X Extracts X X X X
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