TMI Blog2018 (12) TMI 330X X X X Extracts X X X X X X X X Extracts X X X X ..... sions under Section 271(1)(c). Failure on the part of the assessee to file the returns voluntarily, as statutorily prescribed, would be a culpable act or omission attracting penalty under Section 271(1)(c). It was only subsequent to the search that the assessee filed returns and this reveals the intention of the assessee to avoid payment of tax; if the search had not been taken out. There is also clear evidence of attempt to evade payment of tax on rental income, which is received by his wife for property belonging to him. The fact regarding the sale of the property in variance with the consideration mentioned in the agreement is also evidence of intention to evade payment of tax - Decided in favour of the Revenue and against the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bench relating to three assessment years, from 2001-02 to 2003-04. The penalty levied under Section 271(1)(c) of the Income Tax Act, 1961 (hereinafter referred to as the Act ) by the Assessing Officer (A.O.) was affirmed by the Commissioner of Income Tax (Appeals). However, the quantum of penalty, which was directed to be paid at 200% of the tax on income concealed, vide Annexure B order, was restricted to 100% by the Tribunal and the appeals were thus allowed in part. 3. The facts in brief are that a search and seizure was carried out at the residence and office premises of the assessee on 06.08.2003 and concealment of income for the three years was detected. In response to a notice under Section 153A, in ITA No.222/2013 the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income of ₹ 4,75,400/-. The A.O. made an addition of ₹ 1,05,000/-, which was the rent received by appellant's wife, vide assessment order at Annexure B. 6. The appellant's contention is that the Assessing Authority and the appellate forum failed to notice the fact that pursuant to the notice under Section 153A of the Act, the appellant has suo motu declared additional amount as income and offered the same for assessment. The additional income was not on the basis of any materials seized by the Department. The Tribunal ought to have found that the return filed pursuant to the notice should be treated as return filed under Section 139. There was no concealment or furnishing of inaccurate particulars by the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat is the only document, where the assessee can furnish the particulars of his income. When such particulars are found to be inaccurate, the liability would arise. In Dilip N. Shroff v. Joint CIT [2007] 6 SCC 329, this court explained the terms concealment of income and furnishing inaccurate particulars . The court went on to hold therein that in order to attract the penalty under section 271(1)(c), mens rea was necessary, as according to the court, the word inaccurate signified a deliberate act or omission on behalf of the assessee. It went on to hold that clause (iii) of section 271(1)(c) provided for a discretionary jurisdiction upon the assessing authority, inasmuch as the amount of penalty could not be less than the amount of tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eturn cannot amount to the inaccurate particulars. 9. Admittedly there was unexplained income as discernible from the records maintained by the assessee revealed on search and subjected to seizure. Admittedly, there was no explanation offered by the assessee as to the non-filing of the income tax return. Under such circumstances, we are of the opinion that the returns filed subsequent to the search would not absolve the penal provisions under Section 271(1)(c) of the Act. 10. In Commissioner of Income Tax v. N.Jayaprakash, [2018] 400 ITR 99 (Ker.), a Division Bench of this Court has held thus:- If the concealment or furnishing of inaccurate particulars of income is an act committed by the assessee at the time of filin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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