TaxTMI 
TaxTMI 
2016 (12) TMI 110
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....earing , we, therefore, proceed to decide the appeal ex-parte on merit after hearing the ld. DR. 3. The issue raised by the assessee in the grounds of appeal no.1 and 2 is against the confirmation of penalty as imposed by the AO u/s 271(1)(c) of the Act of Rs. 1,64,512/-. 4. The facts of the case are that the assessee filed his return of income on 9.9.2009 declaring a total income of Rs. 6,50,491/-. The case of the assessee was selected for scrutiny. Accordingly, statutory notices u/s 143(2) and 142(1) were issued and served upon the assessee. The AO framed the assessment u/s 143(3) vide order dated 26.12.2011 by assessing the total income at Rs. 12,22,850/- by making addition of Rs. 4,84,000/- on account of peak credit and Rs. 88,360....
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....om the Latin root "concelare" which implies to hide or withdraw from observation; to cover or keep from sight; to prevent the discovery to withhold knowledge of. The offence of concealment is, thus, a direct attempt to hide an item of income or a portion thereof from the knowledge of the Income-tax authorities. In Webster's Dictionary, "inaccurate" has been defined as "not accurate, not exact or correct; not according to erroneous; as an inaccurate statement, copy or transcript." The words 'particulars of income' refer to the facts that lead to the correct computation of income in accordance with the provisions of the Act. In other words, any fact material to the determination of an item as income or mater the correct computatio....
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....nalty under Section 271(1)(c) of the Act. If we take the view that a claim which is wholly untenable in law and has absolutely no foundation on which it could be made, the assessee would not be liable to imposition of penalty, even if he was not acting bonafide while making a claim of this nature, that would give a licence to unscrupulous assessees to make wholly untenable and unsustainable claims without there being any basis for making them, in the hope that their return would not be picked up for scrutiny and they would be assessed on the basis of self Assessment under Section 143(1) of the Act and even if their case is selected for scrutiny, they can get away merely by paying the tax, which in any case, was payable by them. The conseque....
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....pon which he has arrived at the returned figure of income. Any inaccuracy made in such books of account or otherwise which resulted In keeping of or hiding a portion of his income is punishable as furnishing inaccurate particulars of his income. It may bestated that the penalty provisions would operate when there is a failure of duty on the part of the assessee to disclose fully and truly particulars of income. The duty is enjoined upon the assessee to make a correct and complete disclosure of his income if the disclosure made of the particulars of income is incorrect, he commits breach of the duty and is liable to penal consequences contemplated under section 271(1)( c ) (iii) 5.7 In the decision rendered in the case of CIT V/s MAK Data....
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.... of which worked out to Rs. 4,84,000/- The bank account was not disclosed in the return filed by the appellant. When confronted during assessment proceedings, the appellant simply surrendered the said income, offering no explanation for the same. Thus on the facts of the case, the appellant having been unable to substantiate that the cash deposits of Rs. 4,84,OOO/- were from accounted and genuine sources cannot be said to have furnished a bonafide explanation for the anomaly detected by the AO or to have satisfactorily discharged the onus cast upon him. In view of these facts, I find the levy of penalty of Rs. 1,64,512/- to be in order and the same is upheld. Accordingly, the ground raised by the appellant is dismissed. 5. We have heard ....