TaxTMI 
TaxTMI 
2017 (10) TMI 1418
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....s. 14.25 Lakhs, Rs. 10 Lakhs were paid during Financial Year 2006-07 and Rs. 4.25 Lakhs were paid in Financial Year 2007-08. In the return of income filed in response to notice u/s. 153A for assessment year 2007-08, the assessee offered Rs. 12,21,000/-( including Rs. 2,21,000/- declared under the head 'Income from other sources') as additional income. The return filed by assessee was accepted by the Assessing officer and no further addition was made. However, the Assessing Officer initiated penalty proceedings u/s. 271(1) (c) for furnishing inaccurate particulars of income. 2.1 In assessment year 2008-09, the assessee offered remaining amount of Rs. 4.25 Lakhs as additional income. The return in response to notice u/s.153A was accepted by the Assessing Officer without making any further addition. The Assessing Officer initiated penalty proceedings u/s. 271(1) (c) of the Act for furnishing inaccurate particulars of income. 2.2 The ld. AR submitted that a perusal of the notice issued u/s. 274 r.w.s 271(1) (c) of the Act for all the three assessment years would show that irrelevant limb has not been struck off in the notice. Thus, both the limbs i.e. concealment of income or furnish....
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....sing Officer even at the time of recording satisfaction u/s. 271(1) (c) of the Act in assessment years 2007-08 and 2008-09. 3.1 In second plank of his argument, the ld. AR for the assessee submitted that penalty orders for assessment years 2007-08 & 2008-09 are liable to be set aside on the ground that satisfaction has been recorded for initiating penalty proceedings for furnishing inaccurate particulars of income and whereas, in order levying penalty, the Assessing Officer has held that it is a case of deemed concealment of income. Again at the time of quantifying penalty amount, the Assessing Officer has observed that the assessee is liable for penalty for furnishing inaccurate particulars of income. Through out, there was confusion in the mind of Assessing Officer, whether penalty is to be levied for furnishing inaccurate particulars of income or concealment of income. In such circumstances, penalty order is liable to be set aside. 4. The ld. AR for the assessee contended that 'furnishing inaccurate particulars of income' and 'concealment of income' are two different expressions, having different connotations. These expressions can not be used inter-changeably. The ld. AR in s....
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....the impugned order and dismissing the appeals of the assessee. 7. Controverting the submissions advanced on behalf of the Department, the ld. AR submitted that the assessee in its books of account has not shown any part of the transaction qua purchase of flat. It is only during the course of search that the assessee admitted investment of Rs. 14.25 Lakhs towards purchase of flat and the same was thereafter offered as additional income. The addition was made by the Assessing Officer u/s. 69 of the Act. The assessee never contested the addition and paid tax on the same. 8. We have heard the submissions made by representatives of rival sides and have perused the orders of Authorities below. We have also considered various decisions on which the ld. AR has placed reliance. 9. It is an undisputed fact that during the course of search, certain documents were found and seized which indicate that assessee has invested Rs. 14.25 Lakhs for purchase of flat. The undisclosed investment was offered by the assessee as additional income; Rs. 10 Lakhs in assessment year 2007-08 and Rs. 4.25 Lakhs in assessment year 2008-09. While recording satisfaction for initiating penalty proceedings, the As....
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....stablishes that 'furnishing inaccurate particulars of income' and 'concealment of income' are two different charges. There should be no ambiguity in the mind of Assessing Officer at the time of recording satisfaction and thereafter, at the time of levying penalty with respect to the charge for levying penalty u/s. 271(1) (c) of the Act. The Assessing Officer should be clear in his mind at the time of recording satisfaction the limb of clause (c) of sub section (1) of Section 271 that has to be invoked. The word 'concealment' means act of hiding something or preventing it from being known. The expression 'concealment of income' denotes withholding or hiding information about income or investment in the books or in the return of income. Such act of concealment is generally deliberate. On the other hand, 'inaccurate particulars' denote that some information is furnished and the said information is wrong, incorrect, false, defective or incomplete. For particulars to be inaccurate, there has to be first furnishing of information or particulars. 12. In the present case, penalty u/s. 271(1) r.w.s 5A has been levied in respect of additional income offered by assessee representing investme....
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....specified previous year" is herein below: "(b) "Specified previous year" means the previous year- (i) which ended before the date of search, but the date of filing the return of income under sub-section (1) of section 139 for such year has not expired before the date of search and the assessee has not furnished the return of income for the previous year before the said date; or (ii) in which search was conducted." A perusal of the above provisions of section 271AAA makes it clear that provisions of section 271AAA are attracted in respect of undisclosed income of the specified previous year. The following conditions are to be satisfied for a particular relevant year to fall within the ambit of definition of 'specified previous year'; i) The previous year should end before the date of search ii) The date of filing return of income u/s. 139 (1) for such year has not expired before the date of search. iii) The assessee has not furnished return of income for said previous year. In the instant case, the date of search is 11.09.2009. The due date for filing return of income u/s. 139(1) of the Act in the present case is 30.09.2009. Undisputedly, the assessee had not filed any....