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TMI Blog2019 (3) TMI 552X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case are that the assessee has filed its return of income electronically on 31.12.2006 declaring loss at Rs. 3,26,832/-. The case of the assessee was selected for scrutiny assessment and notice under section 143(2) was issued and served upon the assessee. On scrutiny of the accounts it revealed to the AO that the assessee had sold capital assets for Rs. 15,75,000/-. The written down value of assets was Rs. 2,97,643/-. Thus, there was a capital gain of Rs. 12,77,357/-. This gain was not disclosed by the assessee and offered for taxation in the return of income. Hence, the ld.AO confronted the assessee as to why it failed to offer the above gain for taxation. In response to the above notice, the assessee filed submissions on 5.12.2008. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td vs. CIT, 348 ITR 306 (SC) . On the other hand, the ld.DR relied upon the orders of the Revenue authorities and contended it is a deliberate attempt at the end of the assessee for not disclosing the capital gain earned by it on sale of asset. 5. We have considered rival contentions and gone through the record. Section 271(1)(c) of the Income Tax Act, 1961 has direct bearing on the controversy. Therefore, it is pertinent to take note of the section. "271. Failure to furnish returns, comply with notices, concealment of income, etc. (1) The Assessing Officer or the Commissioner (Appeals) or the CIT in the course of any proceedings under this Act, is satisfied that any person (a) and (b)** ** ** (c) has concealed the particulars o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e course of any proceedings before them should be satisfied, that the assessee has; (i) concealed his income or furnished inaccurate particulars of income. As far as the quantification of the penalty is concerned, the penalty imposed under this section can range in between 100% to 300% of the tax sought to be evaded by the assessee, as a result of such concealment of income or furnishing inaccurate particulars. The other most important features of this section is deeming provisions regarding concealment of income. The section not only covered the situation in which the assessee has concealed the income or furnished inaccurate particulars, in certain situation, even without there being anything to indicate so, statutory deeming fiction for c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have been disclosed by the assessee. These two situations provided in Explanation 1 appended to section 271(1)(c) makes it clear that that when this deeming fiction comes into play in the above two situations then the related addition or disallowance in computing the total income of the assessee for the purpose of section 271(1)(c) would be deemed to be representing the income in respect of which inaccurate particulars have been furnished. 7. Before adverting to the contentions of the ld.counsel for the assessee, let us take note of the finding of the ld.CIT(A), which reads as under: "4.3. I have considered the facts of the case and submission made by the AR of the appellant. The main crux of the appellant's submission is that it had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant has not explained who was the person who had computed the total income and under what circumstances he omitted to mention the short term capital gain earned by the appellant in the return of income so filed. Thus, the appellant had made wholly unsustainable and legally untenable claim in its return of income and thus has filed inaccurate particulars of income. Hence, it is held that the AO has rightly levied penalty u/s 271(l)(c) in this case." 8. In the light of the above details, let us examine contentions of the ld.counsel for the assessee. Only arguments raised by the ld.counsel for the assessee is that, it was an inadvertent and bona fide mistake while filing the return. Question before us is, how such mistake was committed and h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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