AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2017 (8) TMI 639
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.... 06.11.2012. In reply thereto, the assessee submitted that the return for the aforesaid assessment has been filed along salary certificate from the employer and showed total income of Rs. 89,930/-. Subsequently, the assessment has been completed at an income of Rs. 9,14,930/- The Assessing Officer after issuing show cause notice levied penalty u/s. 271(1)(c) by observing as under: "I am therefore, fully satisfied that the assesseea has concealed the particular of his income and furnished inaccurate particular of income to Rs. 8,25,000/- and committed default. Such default had attracted the penalty u/s 271 (1) (c) of the IT Act. I therefore levy minimum penalty u/s 271 (1) (c) at Rs. 2,28,969/- (Rs. Two lakh twenty eight thousand ni....
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.... or offers an explanation which is found by the AO or the CIT(A) or the CIT to be false, or (B) such person offers an explanation which he is not able to substantiate and fails to prove such explanation is bona fide and that all the facts relating to the same and material to the computation of his total income have been disclosed by him, then, the amount added or disallowed in computing the total income of such person as a result thereof shall, for the purposes of cl. (c) of this sub-section be deemed to represent the income in respect of which particulars have been concealed." From the perusal of the aforesaid section, it is apparent that penalty u/s. 271(1)(c) is leviable if the Assessing Officer is satisfied in the c....
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....f inaccurate particulars of income. Both the charges are entirely different. If the proceedings are initiated on charge of concealment, then penalty cannot be levied on the charge of furnishing of inaccurate particulars of income and vice versa. Thus, there / must be a clear finding about the charge for which penalty is imposed or initiated. It is incumbent upon the Assessing Officer to state whether penalty was being levied for concealment of income or for furnishing of inaccurate particulars of income. In the absence of such findings, the order would be bad in law in the case of New Sorathia Engg. Co. Ltd. v. CIT [2006] 282 ITR 642/155 Taxman 513 (Guj.) Hon'ble Gujarat High Court has held as under: "It is incumbent upon the A....
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....ncome or furnishing of inaccurate particulars of income. It is the particulars of income which is the common subject matter of both the charges. The word 'conceal' as per Webster's Dictionary means "to hide, withdraw, or remove from observation; cover or keep from sight; to keep secret; to avoid disclosing or divulging." That means non-disclosure of particulars of income. On the other hand, where particulars are disclosed but such disclosure is not correct, true or accurate, it would amount to furnishing of inaccurate particulars of income. For example, in case of businessman, if a particular transaction of sale is not shown in the books, it would amount to concealment of particulars of income while sale is shown but at al lesse....
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....e illegally imposed by the Tribunal since factual details of income furnished by the Assessee were found to be correct. The matter ultimately reached the Supreme Court and the Hon'ble Court upheld the view of the Tribunal by holding that "mere making of the claim, which is not sustainable in law by itself, will not amounting to furnishing inaccurate claim of furnishing inaccurate particulars regarding the income of the assessee." 9. We are of the opinion Explanation 1 to section 271(1)(c) cannot be applied where charge against the 'Assessee' is furnishing of inaccurate particulars of income since it provides a deeming fiction qua concealment of particulars of income only and consequently cannot be extended to a case where cha....
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....Assessing Officer or the CIT to be false. The second situation is where the assessee in respect of any facts material to the computation of his total income offers an explanation, which the assessee is not able to substantiate and also fails to prove that such explanation was bona fide one and that all the facts relating to the computation of total income have been disclosed by him. The presumption available under Explanation to section 271(1)(c), cannot be drawn unless the case of the assessee falls under either of the clause (a) or (b). 11. In this case, the Assessing Officer has not brought out any specific charge for which the penalty has been imposed on the assessee under section 271(1)(c) of the Act. He has not brought out whether ....