TaxTMI 
TaxTMI 
2015 (12) TMI 1017
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.... salary and agricultural income. Assessee filed his return of income for A.Y. 2009-10 on 11.05.2009 declaring total income at Rs. 1,45,660/-. The case was selected for scrutiny and thereafter the assessment was framed under section 143(3) vide order dated 09.12.2011 and the total income was determined at Rs. 04,87,170/- interalia by disallowing the claim of deduction and other additions. On the disallowance and the additions aggregating to Rs. 3,45,383/- that was made by A.O, he vide order dated 28.05.2012 held that Assessee had concealed the income and had furnished inaccurate particulars of income and accordingly the Assessee was liable to penalty u/s. 271(1)(c) of the Act. He accordingly levied penalty of Rs. 97,251/- u/s. 271(1)(c) of t....
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....s by filing incorrect income. This tendency needs to be strongly discouraged. It is therefore necessary that concealment of income is penalized suitably so that it acts as effective deterrence for other taxpayers. Keeping in view all these facts, I hold that levy of penalty u/s. 271(l)(c) is justified in this case. However, AO is directed to exclude amounts of Rs. 4401/- on account of disallowance of deduction u/s. 80D and Rs. 64,717/- on account of additional income offered for computation of penalty u/s. 271(1)(c), because penalty u/s. 271(1)(c) is not leviable in respect of these two amounts. A.O is directed to restrict penalty u/s. 271(1)(c) accordingly, Ground no. 1 of appeal is thus partly allowed. 4. Aggrieved by the aforesaid ord....
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....ime residing in U.S.A. , Assessee was unable to place the confirmation and to cooperate, Assessee had offered the sum to tax. He submitted that Assessee had fully discharged the onus cast upon him and had neither concealed the particulars of income nor furnished inaccurate particulars. With respect to the addition on account of opening cash balance of Rs. 2,04,015/-, he submitted that the cash balance was opening cash balance which was duly reflected in the statement of cash for A.Y. 2007-08 & 2008-09 and the addition made by the A.O was accepted by the Assessee and was not challenged in appeal. He submitted that merely because the addition has been accepted and not challenged the additions cannot be construed to be undisclosed income. He f....
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....se (c) of Section. 271(1), and the penalty follows. On the other hand, if the assessee is able to offer an explanation, which is not found by the authorities to be false, and assessee has been able to prove that such explanation is bona fide and that all the facts relating to the same have been disclosed by him, then in that case penalty shall not be imposed. 9. In the present case the assessee had disclosed the material facts before the AO. When the assessee has made a particular claim in the return of income and has also furnished all the material facts relevant thereto, the disallowance of such claim cannot automatically lead to the conclusion that there was concealment of particulars of his income by the assessee or furnishing inaccu....