TMI Blog2015 (5) TMI 1096X X X X Extracts X X X X X X X X Extracts X X X X ..... person has concealed the particulars of his income or furnished inaccurate particulars of such income. Thus the satisfaction of the Assessing Officer about the concealment of particulars of income or furnishing of inaccurate particulars of such income is essential before levying any penalty u/s 271(1)(c). The Assessing Officer as is apparent from the penalty order has not satisfied about the concealment of particulars of income or furnishing of inaccurate particulars of income on the part of the assessee. On this basis itself the penalty deleted. -Decided in favour of assessee - I.T.A. No. 289/Kol/2012 - - - Dated:- 21-5-2015 - P. K. Bansal (Accountant Member) And Mahavir Singh (Judicial Member) For the Assessee : V. N. Purohit, FCA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Total income as per order u/s 143(3) dt. 31.12.2007 Rs.16,51,640/- Tax on the assessed income Rs.5,26,770/- Less: Tax on the income excluding concealed income (after giving rebate u/s.88) ₹ 1,925/- Tax sought to be evaded Rs.5,24,845/- Therefore, penalty of ₹ 5,24,845/- being 100% of the tax sought to be evaded is imposed u/s. 271(1)(c) of the I.T. Act, 1961 3. The assessee went in appeal before the ld. CIT(Appeals), who sustained the penalty. 4. We have heard the rival contention of both parties and carefully considered the same along with the order of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urnished inaccurate particulars of the income. This is the settled law that the penalty proceedings and assessment proceedings are different. The penalty proceedings can be initiated on 2 charges i.e. i) concealment of particulars of income and ii) furnishing of inaccurate particulars of income. Both the charges are entirely different. If the proceedings are initiated on charge of concealment, then penalty cannot be levied on the charge of furnishing of inaccurate particulars of income and vice versa. Thus, there must be a clear finding about the charge for which penalty is imposed or initiated. It is incumbent upon the Assessing Officer to state whether penalty was being levied for concealment of income or for furnishing of inaccurate part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... states I am satisfied that this is a fit case where provisions of section 271(1)(c) of the Income Tax Act are clearly attract. It does not state for what default penalty is levied S. 271(1) (c) (iii) is expressly clear that the penalty can be levied for concealment of particulars of income or furnishing of inaccurate particulars of income. It is the particulars of income which is the common subject matter of both the charges. The word conceal as per Webster s Dictionary means to hide, withdraw, or remove from observation; cover or keep from sight; to keep secret; to avoid disclosing or divulging. That means non disclosure of particulars of income. On the other hand, where particulars are disclosed but such disclosure is not correct, true ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emed to be the income in respect of which particulars have been concealed. This deeming provision is not absolute one but is rebuttable one. It only shifts the onus on the assessee. Explanation 1 refers to the two situations in which presumption of the concealment of the particulars of income is deemed. It is not applicable where the charge against the assessee is furnishing inaccurate particulars of the income. The first situation is where the assessee in respect of any fact material to the computation of his total income fails to offer an explanation or offers an explanation, which is found by the Assessing Officer or the Commissioner to be false. The second situation is where the assessee in respect of any facts material to the computati ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
