2012 (5) TMI 676

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....roduced herein below for adjudication:- "1(a) On the facts, in the circumstances of the case and law, the learned CIT(A) erred in law and on facts in deleting penalty U/s. 271 (1) ( c ) amounting to ₹ 8,84,000/- without considering the decision of the Hon. Supreme Court in the case of Dharmendra Textiles 306 ITR 277 (SC), according to which, there is no onus upon the Department to establish 'mens rea'. 3. Brief facts:- The assessee is a Private Limited Company engaged in the business of providing design, engineering, project management, installation, commissioning and after sales services. During the course of assessment proceedings the learned AO noted that the gross profit margin of the assessee Company had fallen drastically fro....

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....nies. The net profit margin of 3 other companies which were considered by the assessee has been ignored on the ground that the same are not comparable. Judicial opinion is quite categorical that for the purpose of imposing penalty u/s 27 (1) (c) it is necessary that either the assessee should have withheld information from the department or furnished inaccurate particulars of its income. Where all the facts were disclosed and addition has resulted due to different views being taken by the tax authority and the assessee on the same facts, it could not be said to amount to concealment of income/furnishing inaccurate particulars of income. Accordingly, I am of the opinion that the AO was not justified in imposing the penalty of ₹ 8,84,00....