TMI Blog2011 (1) TMI 1473X X X X Extracts X X X X X X X X Extracts X X X X ..... ions and perused the orders of the lower authorities and the materials available on record. In the instant case penalty of ₹ 4,58,240/- was levied u/s 271(1)(c) of the Income-tax Act. The assessee filed a return of income declaring total income of ₹ 69,880/-. The Learned Assessing Officer completed the assessment at a total income of ₹ 14,88,640/- after disallowing various expenses on the ground of certain defects in the vouchers and increase in expenses disproportionate to the turnover of the assessee. Further the Learned Commissioner of Income Tax passed an order u/s 263 of the Act directing the Learned Assessing Officer to make a separate addition of ₹ 8 lacs which was disclosed by the assessee as undisclosed inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imately the assessed income of the assessee is almost 16 times of the returned income and therefore penalty u/s 271(1)(c) was correctly levied in the instant case. 5 We find that it is not in dispute that income of ₹ 8 lacs was disclosed by the assessee during the course of survey on 25- 07-2002 and it is also not in dispute that the assessee for the first time filed its return of income for the Assessment Year under consideration on 29-11-2002 where this income was duly disclosed therein. Under section 271(1)(c) the concealment of income is to be inferred from the return of income and not from anything else. What is punishable u/s 271(1)(c) is actual concealment of income in the return of income and not merely an attempt to make c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1)(c) should be levied. In our considered opinion, penalty u/s 271(1)(c) can be levied only when it is found that the assessee has actually concealed particulars of income in the return of income filed by it or has furnished any inaccurate particulars of income in the return of income and the same has no relevance with the quantum of assessed income as a number of times of the returned income. It is a settled position of law that the consideration which applies in a penalty proceedings is different from the consideration which applies in an assessment proceedings. Merely inability of the assessee to substantiate its return of income and therefore estimation of income does not necessarily mean either concealment of income or furnishing of in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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