TaxTMI 
TaxTMI 
2019 (1) TMI 1463
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.... inter alia that :- "1 The learned CIT (Appeal) was not justified by dismissing the appeal. 2. The learned Commissioner of Income Tax (Appeal) has erred in summarily rejecting the plea of the appellant with respect to following. a) That the Learned Assessing Officer has erred both on facts and in law imposing a penalty of Rs. 8,30,500/- u/s 271(1)(c) of the IT Act for alleged concealment of income amounting to Rs. 28,68,750/- being the alleged addition under section 68 of Income Tax Act, 1961 b) That the several observations as made and inferences drawn are untenable, incorrect, unwarranted." 2. Briefly stated the facts necessary for adjudication of the controversy at hand are : On the basis of completed assessment under section 14....
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.... third, addition of Rs. 9,40,000/- on account of lack of verification of purchase of jewellery. It is also not in dispute that during appellate proceedings, ld. CIT (A) has extended the relief of Rs. 1,93,495/- to the assessee. 7. In the backdrop of the aforesaid facts and circumstances of the case, order passed by the lower Revenue authorities and arguments addressed by the ld. AR to the parties, the sole question arises for determination in this case is:- "as to whether the assessee has concealed particulars of income or has furnished inaccurate particulars of income during assessment proceedings while interpreting the provisions contained u/s 271(1)(c) of the Act?" 8. From the perusal of the penalty order passed by the AO, it is appa....
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....be covered by it, there has to be concealment of the particulars of the income of the assessee. Secondly, the assessee must have furnished inaccurate particulars of his income. The meaning of the word "particulars" used in section 271(1)(c) would embrace the detail of the claim made. Where no information given in the return is found to be incorrect or inaccurate, the assessee cannot be held guilty of furnishing inaccurate particulars. In order to expose the assessee to penalty, unless the case is strictly covered by the provision, the penalty provision cannot be invoked. By no stretch of imagination can making an incorrect claim tantamount to furnishing inaccurate particulars. There can be no dispute that everything would depend upon the ....
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....n the computation of total income. The Tribunal analysing the facts had expressed the view that there had been no furnishing of inaccurate particulars of such income and the assessee had declared the entire material. It was a case where a claim put forth by the assessee as regards the loss was not accepted but that would not per se tantamount to furnishing any kind of inaccurate particulars. Thus, there had been no concealment of income or furnishing of inaccurate particulars. Hence, the cancellation of penalty was valid." 12. Moreover, the AO before initiating the penalty proceedings has not recorded satisfaction if the assessee has concealed particulars of income or has furnished inaccurate particulars of income so as to attract the prov....