TaxTMI 
TaxTMI 
2014 (12) TMI 396
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....in the activity of construction. For the assessment year 1995-1996, the returns were submitted on 30.10.1995 showing an income of Rs. 2,40,180/-. Before the order of assessment was passed, a survey was conducted under Section 143A of the Act on 08.12.1995. One of the aspects noticed during the course of survey was that the respondent submitted an application to the Life Insurance Corporation in the year 1993 for sanction of loan and had projected the income through the activity of construction, at Rs. 23.68 lakhs for three financial years between 1993 and 1995. However, the income for three financial years was shown only at Rs. 16,03,364/- in the respective returns. An order of assessment was passed by the Assessing Officer on 15.03.1996 ta....
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.... from taking any steps in that direction; is contrary to law as laid down by the Supreme Court in Commissioner of Income-Tax v. Reliance Petroproducts Pvt.Ltd. [2010] 322 ITR 158 (SC) and other decisions rendered earlier thereto. It is also pleaded that the mere fact that an assessee stated that he paid the tax or accepted the figures to purchase peace, does not absolve him from the liability to be levied penalty and that the orders passed by the Commissioner and Tribunal cannot be sustained in law. 5. Sri Y. Ratnakar, learned Senior Counsel, on the other hand submits that the very basis for conducting survey was the discrepancy between the figures projected in the loan application filed by the respondent, on the one hand and the actual ....
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....erson (a) . (b) has failed to comply with a notice under sub-section (2) of section 115WD or under sub-section (2) of section 115WE or under sub-section (1) of section 142 or sub-section (2) of section 143 or fails to comply with a direction issued under sub-section (2A) of section 142, or (c) has concealed the particulars of his income or furnished inaccurate particulars or such income, or (d) has concealed the particulars of the fringe benefits or furnished inaccurate particulars of such fringe benefits, he may direct that such person shall pay by way of penalty,-- (i) . (ii) In the cases referred to in clause (b), in addition to tax, if any payable by him, a sum of the thousand rupees for each such failure; ....
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....dia and Others v. Dharmendra Textiles Processors and others [2009] 306 IT 277 (SC) , the Supreme Court held that it is not necessary to establish mens rea on the part of an assessee in the context of levying penalty. 9. Though extensive arguments are advanced as to the absence of mens rea or deliberate intention on the part of the assessee in furnishing certain facts and figures and acceptance of those indicated during the survey, we are not inclined to deal with the same; particularly when this is not the Forum or the stage. The principal contention is about the legality of the proceedings initiated under Section 271 (c) of the Act. 10. The endeavor is only to demonstrate that otherwise innocent mentioning of figures, which wer....
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....(c) would be initiated makes the initiation of such proceedings, untenable. 13. Heavy reliance is placed upon a recent judgment of the Supreme Court in Mak Data P. Ltd. v. Commissioner of Income-Tax [2013] 358 ITR 593 (SC) . A perusal of the same discloses that the assessee was not complaining of absence of such endorsement. He was insisting that the satisfaction was not to the effect that there was concealment of income or furnishing of inaccurate information. The relevant portion reads as follows: The Department initiated penalty proceedings for concealment of income and not furnishing true particulars of its income under section 271(1(c) of the Incometax Act. During the course of the hearing, the assessee contended that penalty pro....