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TMI Blog2016 (11) TMI 738X X X X Extracts X X X X X X X X Extracts X X X X ..... n account of not declaring the correct Long Term Capital on sale of immovable properties". 3. Briefly stated, the facts giving rise to this appeal are that search and seizure operations were conducted on 16.1.2008 at the residential premises of Smt. Parminder Chadha, the present assessee, during which, total cash amounting to Rs. 1,02,100/- and jewellery valued at Rs. 13,40,576/- was found and seized. In response to notice issued u/s 142(1) dated 18.11.2008, the assessee filed return of income declaring an income of Rs. 1,36,29,393/- on 16.2.2009 along with copy of original return filed on 30.7.2008. Considering the facts of the case, sequence of events and documentary evidence, the AO calculated long term capital gain at Rs. 5,63,26,666/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case to ascertain as to whether in the eyes of the provisions of the Act as explained by numerous judicial pronouncements, penalty can be levied in this case or not, we would like to discuss in nut shell the relevant legal position regarding levy of penalty u/s 271(1)(c) of the Act and as to how and when such penalty can be levied under this section. There are no two opinions about the settled position of law that regular assessment proceedings and penalty proceedings are two entirely different subjects which operate in distinct and separate spheres so much so that entirely different parameters are applicable for making quantum addition and for levying penalty under section 271(1)(c) of the Act. There can be no dispute with regard to the po ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax Act, 1961, suggests that in order to be covered by it, there has to be concealment of the particulars of the income of the assessee. Secondly, the assessee must have furnished inaccurate particulars of his income. The meaning of the word "particulars" used in section 271(1)(c) would embrace the details of the claim made. Where no information given in the return is found to be incorrect or inaccurate, the assessee cannot be held guilty of furnishing inaccurate particulars. In order to expose the assessee to penalty, unless the case is strictly covered by the provision, the penalty provision cannot be invoked. By no stretch of imagination can making an incorrect claim tantamount to furnishing inaccurate particulars. There can be n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e legal position on this subject, vis a vis the facts of this case, we find that penalty u/s 271(1)(c) of the Act can be levied where the Assessing Officer is satisfied that the assessee has concealed particulars of income or has furnished inaccurate particulars of income. Explanation 1 to this section speaks about the deemed concealment of income in cases where any amount is added or any claim is disallowed in computing the total income of a person, if two situations are available from the impugned facts. First situation is where the assessee, in respect of any facts /material to the computation of total income fails to offer an explanation or offers an explanation which is found to be false. The second situation is where the assessee, in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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