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2019 (6) TMI 395

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..... , Concealment of income and furnishing of inaccurate particulars carry different connotations. Expression concealment of income and furnishing inaccurate particulars of income cannot be used interchangeably. Concealment of income connotes where there is escapment of income from tax net by virtue of assessee concealing information/documents etc. or non-furnishing of information about income earned in the return of income during the relevant period. On the other hand expression furnishing inaccurate particulars of income signifies where the assessee has furnished particulars of income but the information/documents furnished are false/wrong/incorrect or erroneous. In the instant case, there was ambiguity and vagueness in the min .....

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..... return of income for the impugned assessment year the assessee had claimed deduction u/s. 80IA(4) in respect of income from power generation. The Assessing Officer in scrutiny assessment proceedings inter alia made disallowance qua excessive deduction claimed u/s. 80IA(4) of the Act. Apart from above disallowance of ₹ 1,77,857/- u/s. 14A of the Act was also made. The Assessing Officer initiated penalty proceedings u/s. 271(1)(c) of the Act in respect of aforesaid disallowances. The Assessing Officer levied penalty of ₹ 54,958/- u/s. 271(1)(c) vide order dated 05-03-2015 only in respect of disallowance u/s. 14A of the Act. No penalty was levied qua disallowance u/s. 80IA(4) of the Act. 2.1 The ld. AR further conte .....

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..... ders of authorities below. The assessee has challenged levy of penalty u/s. 271(1)(c) on the ground of ambiguity in specifying the charge u/s. 271(1)(c) of the Act. A perusal of assessment order shows that penalty u/s. 271(1)(c) qua disallowance u/s. 14A has been initiated by mentioning both the limbs of section 271(1)(c). The relevant extract of the Assessing Officer where penalty has been initiated reads as under : Further, in view of above discussion, penalty proceedings u/s. 271(1)(c) of the I.T. Act, 1961, are being initiated separately, for furnishing inaccurate particulars of income and concealing the income. 5. Thereafter, while passing penalty order dated 05-03-2015 the Assessing Officer again ment .....

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..... ents furnished are false/wrong/incorrect or erroneous. 7. The Hon ble Karnataka High Court in the case of Commissioner of Income Tax Vs. Manjunatha Cotton and Ginning Factory (supra) has held : 61. The Assessing Officer is empowered under the Act to initiate penalty proceedings once he is satisfied in the course of any proceedings that there is concealment of income or furnishing of inaccurate particulars of total income under clause (c). Concealment, furnishing inaccurate particulars of income are different. Thus the Assessing Officer while issuing notice has to come to the conclusion that whether is it a case of concealment of income or is it a case of furnishing of inaccurate particulars. The Apex Court in .....

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