TaxTMI 
TaxTMI 
2007 (3) TMI 209
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....cessed under section 143(1)(a) of the Income-tax Act, 1961 (for brevity "the Act"), and notice under section 143(2) of the Act was issued for scrutiny. After hearing the representative of the assessees, the assessment was completed under section 143(3) of the Act. 3. In the assessment order under section 143(3) of the Act, in the case of both the assessees, the following additions were made to the returned total income, viz., (i) interest under section 244A of the Act granted for the assessment year 1993-94 ; and (ii) credit in SB account maintained with Canara Bank. Hence, consequential penalty proceedings were initiated by the Assessing Officer under section 271(1)(c) of the Act, for concealment of income and furnishing inaccurate particulars of income. An opportunity was given to the assessees to show cause against the proposed penalty and their representatives were heard. However, the explanation offered by the assessees' representatives that they had no intention to conceal the abovementioned income, but the omissions were due to oversight, was not accepted. Consequently, holding that the penalty under section 271(1)(c) of the Act is squarely applicable on both addition....
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....C or paid by way of advance tax or treated as paid under section 199, during the financial year immediately preceding the assessment year, such interest shall be calculated at the rate of one per cent. for every month or part of a month comprised in the period from the 1st day of April of the assessment year to the date on which the refund is granted : Provided that no interest shall be payable if the amount of refund is less than ten per cent. of the tax as determined under sub-section (1) of section 143 or on regular assessment ; (b) in any other case, such interest shall be calculated at the rate of one per cent. for every month or part of a month comprised in the period or periods from the date or, as the case may be, dates of payment of the tax or penalty to the date on which the refund is granted. Explanation.-For the purposes of this clause, 'date of payment of tax or penalty' means the date on and from which the amount of tax or penalty specified in the notice of demand issued under section 156 is paid in excess of such demand. (2) If the proceedings resulting in the refund are delayed for rea sons attributable to the assessee, wh....
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....s) or the Commissioner (Appeals) in the course of any proceedings under this Act, is satisfied that any person- . . . (c) has concealed the particulars of his income or furnished inaccurate particulars of such income, he may direct that such person shall pay by way of penalty,- (i) Omitted by the DTL (Amend.) Act, 1989 with effect from April 1, 1989 ; (ii) in the cases referred to in clause (b), in addition to any tax payable by him, a sum which shall not be less than one thousand rupees but which may extend to twenty-five thousand rupees for each such failure ; (iii) in the cases referred to in clause (c), in addition to any tax payable by him, a sum which shall not be less than, but which shall not exceed twice, the amount of tax sought to be evaded by reason of the concealment of particulars of his income or the furnishing of inaccurate particulars of such income. Explanation 1.-Where in respect of any facts material to the computation of the total income of any person under this Act,- (A) such person fails to offer an explanation or offers an explanation which is found by the Assessing Officer or the Deputy Commissi....
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....ithin the period specified in sub-section (1) of section 153 a return of his income which he is required to furnish under section 139 in respect of any assessment year commencing on or after the 1st day of April, 1989, and until the expiry of the period aforesaid, no notice has been issued to him under clause (i) of sub-section (1) of section 142 or section 148 and the Assessing Officer or the Deputy Commissioner (Appeals) or the Commissioner (Appeals) is satisfied that in respect of such assessment year such person has taxable income, then, such person shall, for the purposes of clause (c) of this sub-section, be deemed to have concealed the particulars of his income in respect of such assessment year, notwithstanding that such person furnishes a return of his income at any time after the expiry of the period afore said in pursuance of a notice under section 148. Explanation 4.-For the purposes of clause (iii) of this sub-section, the expression 'the amount of tax sought to be evaded',- (a) in any case where the amount of income in respect of which particulars have been concealed or inaccurate particulars have been furnished exceeds the total income asses....
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....isclosed so far in his return of income to be furnished before the expiry of time specified in sub-section (1) of section 139, and also specifies in the statement the manner in which such income has been derived and pays the tax, together with interest, if any, in respect of such income. Explanation 6.-Where any adjustment is made in the income or loss declared in the return under the proviso to clause (a) of sub-section (1) of section 143 and additional tax charged under that section, the provisions of this sub-section shall not apply in relation to the adjustment so made." 10. No doubt, the assessees were given an opportunity and their representatives were heard, who stated that they had no intention and the omission was an oversight. The Assessing Officer, however, not convinced with either of the reasons, levied penalty under section 271(1)(c) of the Act. While doing so, the Assessing Officer, of course, observed that the assessees had not proved beyond the shadow of doubt the existence of the bona fide belief that the interest under section 244A of the Act was not taxable. 11. It is a settled law that in economic offences, the statutory liability to pay either d....