TaxTMI 
TaxTMI 
2017 (10) TMI 1160
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....posal. 2.The petitioner has impugned the order passed by the respondents levying penalty under Section 271(1)(c) of the Income Tax Act, 1961 [hereinafter called as the Act ]. The facts which are necessary for the disposal of the writ petition are briefly stated as hereunder:- 2.1.The petitioner was the co-owner of the immovable property situated in Tamil Nadu and she had sold the property and paid the entire capital gain tax applicable in respect of the transaction. The petitioner thereafter claimed 50% of the capital gains tax as rebate under Indo-Canadian DTAA. However, before the assessment proceedings could commence, the respondent issued a notice dated 30.06.2016 referring to Article 13 of Indo-Canadian DTAA and stated that gains....
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....spite the fact that the entire tax due was already remitted in full and there is no loss of revenue and a mistaken and an inadvertent claim of rebate cannot result in penalty proceedings especially when Income Computation statement was accepted and assessment was completed. As stated in the assessment order, the respondent issued notice under Section 274 read with Section 271 of the Act, dated 26.08.2016. A copy of such notice is found in page 16 of the typed set of papers and it appears to be in printed format. The relevant column has not been filled up except that the respondent had made 'a tick mark' in short paragraph "have concealed the particulars of your Income or ______________ furnished inaccurate particulars of su....
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.... in the course of any proceedings under this Act, is satisfied that any person-- (a)........... (b)........... (c)has concealed the particulars of such income or furnished inaccurate particulars of such income. .............." 6.Thus, it has to be seen as to whether in the instant case the petitioner has concealed the income or furnished inaccurate particulars of such income. Admittedly, there is no such allegation made in the show cause notice dated 26.08.2016. As pointed out earlier, the notice is a printed format with some of the relevant portions left blank. In response to the notice, the petitioner had submitted the reply dated 06.02.2017 stating that after she was served notice under Section 143(....
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....rief that she is entitled to claim rebate for the taxes paid in the other country. On the notice being issued by the respondent, on being advised, the petitioner has withdrawn the claim and in fact, that was accepted by the respondent and the assessment was completed by the order dated 26.08.2016. Until and unless the respondent had rendered a specific finding that the conduct of the petitioner amounted to concealment of particulars of her income or furnished inaccurate particulars of such income, the question of invoking Clause (c) of Sub Section (1) of Section 271 of the Act does not arise. In fact, certain words and expressions used in the impugned order are uncalled for. There is no reason assigned by the respondent as to how he had for....
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....w cause notice, the Assessing Officer sought for details regarding the documents . In reply, the assessee made an offer to surrender a sum of Rs. 40.74 lakhs with a view to avoid litigation and buy peace. The Assessing Officer completed the assessment wherein the amount surrendered was brought to tax and also passed a penalty order under Section 271 (1) (c) of the Act. The Tribunal set aside the order of penalty stating that it cannot be solely based upon the assessee's surrender. The High Court reversed the order passed by the Tribunal and the Hon'ble Supreme Court pointed out that it is not the case of voluntary surrender and the surrender was made in view of the detection made by the Assessing Officer in the search conducted in t....