TaxTMI 
TaxTMI 
TaxTMI 
2017 (6) TMI 775
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....completed at an income of Rs. 37,98,058/- as against the returned income of Rs. 11,54,492/-. Subsequently, penalty proceedings u/s 271(1)(c) of the Act were initiated and it was noted by the assessing officer that assessee had failed to disclose the short term capital gain of Rs. 23,25,566/- and when confronted by the Assessing Officer with the same, the assessee had offered the same for taxation. The Assessing Officer further observed that the assessee did not file any revised return, nor was the offer for taxation voluntary. The assessee had contended before the Assessing Officer during the course of penalty proceedings that she was a senior citizen and that she had meagre income from investment till Assessment Year 2005-06. Her husband h....
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....penalty order in respect of penalty of Rs. 7,82,787 levied on the assessee u/s 271 (1)(c) of the Act. 2. (i) That the learned CIT (Appeal) erred in not holding that the penalty notice dt. 17.02.2008 issued by the AO was prima-facie an invalid notice as a did not bear the office seal of the officer nor did it convey the default for which penalty proceedings had been initiated and therefore could not result into a valid penalty order. 2. (ii) That the learned CIT (Appeal) erred in not holding that the issue and service of a valid notice u/s 274 of the Act being a substantive question of law could be urged by the assessee at any stage of proceedings and further erred in not disposing off on merit the objections raised by the assessee, be....
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....ived no statement of purchase and sale of mutual funds had been sent by Standard Chartered Bank to me. At the time of filing returns whatever papers I had I shared with Mr. Anand and he prepared and filed my return. Since the statement of mutual fund transactions had not been sent by Standard Chartered Bank the information contained therein could not be included in my return. During assessment proceedings I was asked to obtain this statement from the bank and, thereafter, I agreed to the inclusion of capital gains income in my return. I paid tax as demanded thereafter. A heavy penalty was also imposed. I never committed any act of concealment wilfully and the omission was due to my ignorance and lack of experience. I request that I may be f....
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.... by holding in Para 62 that finding in assessment proceedings cannot automatically be adopted in penalty proceedings and the authorities have to consider the matter afresh from different angle. The statute requires a satisfaction on the part of the Assessing Officer. He is required to arrive at a satisfaction so as to show that concealed the amount or furnished inaccurate particulars and this onus is to be discharged by the Department. While considering whether the assessee has been able to discharge his burden the Assessing Officer should not begin with the presumption that he is guilty. Since the burden of proof in penalty proceedings varies from that in the assessment proceedings, a finding in the assessment proceedings that a particular....
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.... of material disclosed there cannot be a case of concealment of income or furnishing inaccurate particulars of income. Further if there is any material or additional evidence which was not produced during assessment proceedings same can be produced in penalty proceedings as both assessment and penalty proceedings are distinct and separate. In CIT vs. M/s Sidhartha Enterprises (2009) 184 Taxman 460 (P & H)(HC) it was held that the judgment in Dharmendra Textile cannot be read as laying down that in every case where particulars of income are inaccurate, penalty must follow. Even so, the concept of penalty has not undergone change by virtue of the said judgment. Penalty is imposed only when there is some element of deliberate default. 5.1 Rev....