TMI Blog2016 (10) TMI 707X X X X Extracts X X X X X X X X Extracts X X X X ..... rmed by the Ld. Commissioner of Income Tax (Appeal). - Decided against assessee. - ITA No.3119/Mum/2015 - - - Dated:- 3-8-2016 - Shri Joginder Singh, Judicial Member For The Assessee : Shri R. N. Vasani and Shri V.H. Vasani For The Revenue : Ms. Mahua Sarkar-DR ORDER The assessee is aggrieved by the impugned order dated 30/01/2015 of the Ld. First Appellate Authority, Mumbai. The only ground raised by the assessee pertains to confirming the penalty of ₹ 8,96,144/- imposed u/s 271(1)(c) of the Income Tax Act, 1961 (hereinafter the Act). 2. During hearing, the ld. counsel for the assessee, Shri R. N. Vasani along with Shri V.H. Vasani, contended that due to error of the assessee, the accounts, being operated by the assessee in different banks could not be disclosed, to the Revenue, in the return of income, filed by the assessee. It was explained that quantum addition was accepted by the assessee and no further appeal was filed. Reliance was placed upon the decision in Sir Shadilal Sugar General Mills Ltd. vs CIT (1987) 168 ITR 705 (SC), CIT vs Somany Evergree Knits Ltd. (2013) 352 ITR 592 (Bom.), CIT vs S.L.N. Traders (2)(2012) 341 ITR 235(Karnataka) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the view that the assessee concealed its income/furnished inaccurate particulars of such income, therefore, the penalty was rightly confirmed. 2.4. So far as, the cases relied upon by the assessee is concerned, I find that in the case of Sir Shadilal Sugar General Mills Ltd. Ors. (1987) 168 ITR 705 (SC), there was finding of facts by the Tribunal that there was existence of evidence in support of the claim of the assessee and in that situation, the Tribunal held that there is no concealment as such. In that situation, the Hon'ble Apex Court took a particular view. However, in the present appeal, the assessee right from assessment stage till the stage of the Tribunal, did not adduce any evidence explaining the source of cash deposits, made in the banks and more so did not disclose these accounts in the return of income, therefore, in my humble opinion, being on different facts the conclusion drawn by Hon'ble Apex Court is not applicable to the facts of the present appeal. Likewise in the case of CIT vs Somani Evergree Knit Ltd. (2013) 352 ITR 592 (Bom.), there was excess claim of depreciation. Rectification was made by the assessee during assessment proceedings and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch explanation is bona fide and that all the facts relating to the same and material to the computation of his total income have been disclosed by him, then the amount added or disallowed in computing the total income of such person as a result thereof shall, for the purposes of clause (c) of this sub-section, be deemed to represent the income in respect of which particulars have been concealed. The AO, in our view, shall not be carried away by the plea of the assessee like voluntary disclosure , buy peace , avoid litigation , amicable settlement , etc. to explain away its conduct. The question is whether the assessee has offered any explanation for concealment of particulars of income or furnishing inaccurate particulars of income. Explanation to Section 271(1) raises a presumption of concealment, when a difference is noticed by the AO, between reported and assessed income. The burden is then on the assessee to show otherwise, by cogent and reliable evidence. When the initial onus TAXPUNDIT.ORG placed by the explanation, has been discharged by him, the onus shifts on the Revenue to show that the amount in question constituted the income and not otherwise. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt proceedings and the AO is not required to record his satisfaction in a particular manner or reduce it into writing. The scope of Section 271(1)(c) has also been elaborately discussed by this Court in Union of India vs. Dharmendra Textile Processors (2008) 13 SCC 369 and CIT vs. Atul Mohan Bindal (2009) 9 SCC 589. The principle laid down by this Court, in our view, has been correctly followed by the Revenue and we find no illegality in the department initiating penalty proceedings in the instant case. We, therefore, fully agree with the view of the High Court. Hence, the appeal lacks meri and is dismissed. There shall be no order as to costs. 4.2. In the light of the foregoing discussion and the judicial pronouncements, mentioned hereinabove, I am reproducing hereunder the relevant provision of section 271(1)(c) of the Act for ready reference and analysis:- 271. (1) If the Assessing Officer or the Commissioner (Appeals) or the [Principal Commissioner or] Commissioner in the course of any proceedings under this Act, is satisfied that any person- xxxxxxxxxxxxxxxxxxxxx ( c ) has concealed the particulars of his income or furnished inaccurate particular ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which had been furnished for the year immediately preceding the first preceding year and so on, until the entire utilised amount is covered by the amounts so added or deducted in such earlier assessment years. Explanation 3. -Where any person fails, without reasonable cause, to furnish within the period specified in sub-section (1) of section 153 a return of his income which he is required to furnish undersection 139 in respect of any assessment year commencing on or after the 1st day of April, 1989, and until the expiry of the period aforesaid, no notice has been issued to him under clause (i) of subsection (1) of section 142 or section 148 and the Assessing Officer or the Commissioner (Appeals) is satisfied that in respect of such assessment year such person has taxable income, then, such person shall, for the purposes of clause (c) of this sub-section, be deemed to have concealed the particulars of his income in respect of such assessment year, notwithstanding that such person furnishes a return of his income at any time after the expiry of the period aforesaid in pursuance of a notice under section 148. xxxxxxxxxxxxxxxxxxx (5) The provisions of this section as the ..... 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