TMI Blog2016 (12) TMI 355X X X X Extracts X X X X X X X X Extracts X X X X ..... its closing stock, the aforesaid amount would have escaped income to tax. This is so as the Appellant – Assessee had not even made any attempt to file a revised return prior thereto or even suo motu bring it to be notice of the Assessing Officer that there was mistake in filing original return and tax on ₹ 34 lakhs is payable. The Supreme Court in Union of India and Others Vs. Dharmendra Textile Processors and Others [2008 (9) TMI 52 - SUPREME COURT] has held that Section 271(1)(c) of the Act indicate an element of strict liability on the assessee for concealment or filing inaccurate income. Wilful concealment is not an essential ingredient for attracting civil liability of penalty as is the case in prosecution under Section 276C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the return of income for the Assessment Year 2004- 05. On 22nd December, 2006 the Assessing Officer completed the assessment under Section 143(3) of the Act, assessing the appellant to total income of ₹ 5.65 crores. Subsequently, on 25th March, 2009 the assessment for the subject assessment year was reopened on the ground that income chargeable to tax has escaped assessment. In the assessment order passed under Section 143(3) read with 147 of the Act in reassessment proceedings, the total income of the Appellant Assessee was determined at ₹ 5.99 crores. This by making an addition of ₹ 34 lakhs being the additional price paid for repurchase of five flats in the closing stocks. The Assessing Officer also noted the fact t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shed inaccurate particulars of the income and consequently penalty was correctly imposed by the Assessing Officer. 6. On further appeal the Tribunal by the impugned order dismissed the Assessee's Appeal holding that it had furnished inaccurate particulars of its income by not adding an amount of ₹ 34 lakhs as part of the value of its closing stock when the same had been debited as an payment. This led to concealment of its income. 7. The grievance of the Appellant Assessee before us is that there was no malafide intent on its part. Consequently no penalty should have been imposed upon the Appellant Assessee on not having disclosed the amount of ₹ 34 lakhs as a part of the value of its closing stock. This non inclus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act indicate an element of strict liability on the assessee for concealment or filing inaccurate income. Wilful concealment is not an essential ingredient for attracting civil liability of penalty as is the case in prosecution under Section 276C of the Act. The Court held that penalty under Section 271(1)(c) of the Act is in the nature of civil liability and mensrea is not necessary. The decision cited by the petitioner of the Kerala High Court in India Sea Foods (supra) is no longer good law in view of the Supreme Court's decision in Dharmendra Textile Processors (supra). 9. In the above view as all authorities have come to concurrent findings of fact that the Appellant assessee has filed inaccurate particulars of the income. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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