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TMI Blog2019 (11) TMI 998X X X X Extracts X X X X X X X X Extracts X X X X ..... al, assessee has filed cross objection bearing no.32/Ahd/20187. Assessee is also in appeal against order of ld.CIT(A)-II, Baroda dated 12.11.2014 challenging confirmation of penalty under section 271(1)(c) of the Act. All these appeals are disposed of by this common order for the sake of convenience. 2. First we take ITA No.2142/Ahd/2014 along with CO No.32/Ahd/2018. Registry has pointed out that CO filed by the assessee is time barred by 1030 days. Revenue in its appeal challenged deletion of addition as set out in the grounds of appeal. 3. The ld.counsel for the assessee at the outset submitted that tax effect by way of relief given by the ld.CIT(A) is less than Rs. 50 lakhs. He submitted that by virtue of recent CBDT Circular No.17 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Circular, then the Department will be at liberty to approach the Tribunal for recall of this order. Such application should be filed within the time period prescribed in the Act. In view of the above, the appeal of the Revenue is dismissed due to low tax effect. 5. The ld.counsel for the assessee did not press her CO, hence, appeal of the Revenue is dismissed due to low tax effect, the CO of the assessee is dismissed for want of prosecution. 6. Now we take ITA No.445/Ahd/2015. 7. In this appeal, the assessee has challenged confirmation of penalty amounting to Rs. 2,76,012/- levied by the AO under section 271(1)(c) of the Act. 8. Brief facts of the case are that the assessee has filed her return of income electronically on 30.10.2017 d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied upon the orders of the revenue authorities. 11. We have duly considered rival submissions and gone through the record carefully. 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 of his income or furnished inaccurate particulars of such income. He may direct that such person shall pay by way of penalty. (i)and (Income-tax Officer,)** ** ** (iii) in the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 concealment of income comes into play. This deeming fiction, by way of Explanation I to section 271(1)(c) postulates two situations; (a) first whether in respect of any facts material to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 13. In the light of the above, let us consider facts of the present case. No doubt the addition on account of unexplained credit found deposited in the bank account with Punjab National Bank, has been made at Rs. 8,20,000/-. This addition stand confirmed at the end of the ld.CIT(A), and thereafter, the assessee did not press CO before us. Question is, if an issue has been decided against the assessee on the wrong premise, can that be used against the assessee in the penalty proceedings a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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