TaxTMI 
TaxTMI 
TaxTMI 
2018 (12) TMI 1091
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....e has not raised the legal ground at the time of filing the appeal but in our considered opinion and following the ratio of judgment of Hon'ble Apex Court in the case of National Thermal Power Company Limited 229 ITR 383(SC) as well as in the case of Jute Corporation of India 178 ITR 668 (SC) the additional legal grounds raised before us deserves to be admitted for adjudication in as much as the same involves point of law which does not require any further investigation of facts. It is also clear that the issues raised in the additional ground of appeal goes to the root of the jurisdiction of the Assessing Officer to levy the penalty u/s 271(1)(c) of the Act and therefore the same are relevant to determine the liability of the assessee for penalty u/s 271(1)(c) of the Act. Accordingly the additional ground is admitted for adjudication. 4. Briefly stated facts as culled out from the records are that the assessee is an individual carrying out the business of running marriage garden. Income of Rs. 12,93,110/- shown as income in the income tax return filed on 31.03.2009. A survey u/s 133A of the I.T. Act was conducted at the premises of the assessee on 22.02.2008. The appellant ha....
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....1. The quantum appeal for the above on which penalty proceedings have been initiated was filed before the Hon'ble Bench vide ITA No. 122/IND/2012 which was disposed off for non prosecution vide order dated OB.05.2012. 2. Appellant had filed an MA against this order of the Hon'ble Bench vide MA No. 64/IND/2016. This application of the appellant was dismissed being barred by limitation vide order dated 16.09.2016. Presently, appellant is before Hon'ble High Court against the order disposing the MA. 3. Ld. AO had initiated penalty proceedings u/s 271(1)(c) by stating that assessee has furnished wrong particulars and concealed the income. [AO Page 2 para 6] 4. Ld. AO has failed to apply the provisions of section 271 which reads as under- (1) . (c) "has concealed the particulars of his income or furnished inaccurate particulars of such income, or ...." From the plain reading of the section, it is very clear that penalty under section 271(l)(c) can be initiated either for concealment of particulars of income or for furnishing inaccurate particulars of income. Ld. AO has recorded the charge as -"furnished wrong particulars and concealed the income." Ld. A....
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....essment order, the additions made are without reference to any specific section under which they are made. It merely states - "Payments made out of undisclosed sources". [AO Para 7] 8. Even if it is presumed that Ld. AO without referring any specific provision meant addition falling in one of the sections from 69 to 69D of the Act, these are all deeming provisions. 9. A deeming provision may be intended to enlarge the meaning of a particular word or to include matters which otherwise mayor may not fall within the main provision. In construing a legal fiction, it is necessary to assume all those facts on which alone the fiction can operate, but, it cannot be extended beyond the purpose for which it is created or beyond the language of the section by which it is created. It cannot be extended by importing another fiction. 10. A legal fiction cannot be extended further by so interpreting it as to go beyond the Legislature's intention in creating the fiction. This is because legal fictions are created only for a definite purpose and they are limited to the purpose for which they are created and should not be extended beyond their legitimate field. A legal fiction, no doubt, has ....
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....of submission of assessee, Assessing Officer passed an assessment order adding said amount to total income and on that amount assessee paid taxes - Subsequently, Assessing Officer imposed penalty under section 271(1)(c) treating aforesaid amount as concealed income of assessee - Tribunal, however, set aside penalty order - Whether it could be said that explanation of assessee for non-inclusion of amount in question in his return of income was bona fide - Held, yes - Whether, therefore, order passed by Tribunal setting aside penalty proceedings was just and proper - Held, yes c. Hon'ble Chennai Bench of ITAT in the case of T. Kodeeswaran - [2009] 33 SOT 3 - order dated 20.10.2008 - HEAD NOTE - Section 271(1}(c),read with sections 144and 132,of the Income-tax Act, 1961 - Penalty - For concealment of income - Assessment year 1986-87 - Whether there could be no concealment of income for a particular year, within meaning of section 271(1)(c), if for that year no return of income was filed by assessee - Held, yes - Whether where additions made were worked out on basis of pure estimation and those additions did not represent money, bullion, jewellery or other valuable article or th....
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....n appeal before the Tribunal, firstly raising the legal issue pleading that Ld. A.O has wrongly initiated the penalty proceedings by not specifying the charge for levy of penalty i.e. whether the penalty proceedings has been initiated for concealing of particulars of income or for furnishing the inaccurate particulars of income. It was also pleaded by the Ld. Counsel for the assessee that though the Ld. Assessing Officer has made proper satisfaction on record in the assessment order for initiating penalty proceedings but in the notice issue u/s 274 r.w.s. 271(1)(c) of the Act, but Ld. A.O remained silent by not specifying as to which charge the penalty proceedings have been initiated. To examine this fact we have gone through the impugned notice issued for initiating the penalty proceedings u/s 271(1)(c) of the Act which is placed at Page-52 of the Paper book and the relevant extract is reproduced below: To Shri Varad Mehta 239, Sunny Palace M P Nagar Zone-1, Bhopal Sir / Madam, Sub:- Penalty proceeding u/s .. 271( 1 ) ( c) .. of the Income Tax Act 1961 for the AY 2008.09 In connection with the penalty proceedings u/s, 271(1) (c) for the assessment year(s) 2008-....