2019 (1) TMI 525

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....sessee filed its return of income on 15.11.2007 declaring a loss of Rs..1,04,95,320/- and the case was selected for scrutiny. While completing the assessment under section 143(3) of the Act, the Assessing Officer assessed the income of the assessee at Rs..22,18,497/- by adding back a sum of Rs..1,27,13,817/- under section 41(1) of the Act. By considering the addition as concealment and furnishing of inaccurate particulars of income, the Assessing Officer levied penalty of Rs..42,79,470/- under section 271(1)(c) of the Act. On appeal against penalty order, after considering the submissions and facts of the case, the ld. CIT(A) deleted the penalty levied under section 271(1)(c) of the Act, against which, the Revenue is in appeal before the Tr....

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....ents Ltd, the Assessing Officer noticed that there was no such amount shown by M/s. India Cements Ltd as 'receivable' from the assessee. As the assessee failed to offer any satisfactory explanations, the Assessing Officer treated the above liability shown by the assessee as a liability ceased to exists and accordingly brought to tax as the income of the year under section 41(1) of the Act. During the course of penalty proceedings, after considering the submissions of the assessee and by considering the additions as concealment and furnishing of inaccurate particulars of income, the Assessing levied penalty under section 271(1)(c) of the Act. 6. Against levy of penalty, before the ld. CIT(A), the assessee has submitted that it had b....

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.... the balance sheet). The ld. CIT(A) further observed that the outstanding balances are coming from the earlier years i.e., the transactions, during the course of which the above credit balances of Rs..1,27,13,817/- have resulted and outstanding at the beginning of the current year, pertain to the financial years prior to the financial year 2006-07. Therefore, the ld. CIT(A) was of the opinion that if the transactions are to be considered as concealment of income or furnishing of inaccurate particulars for the purpose of levying penalty under section 271(1)(c) of the Act, it should be in the year(s) in which the transactions have been effected. Once the transactions are accepted by the revenue in the earlier years and resulting effects in t....