2019 (6) TMI 395

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....return of income for the impugned assessment year on 25-09-2008 declaring total income of Rs. 19,41,040/-. The assessee is engaged in the business of wind power generation and trading of land. The assessee is also engaged in land development activities. In return of income for the impugned assessment year the assessee had claimed deduction u/s. 80IA(4) in respect of income from power generation. The Assessing Officer in scrutiny assessment proceedings inter alia made disallowance qua excessive deduction claimed u/s. 80IA(4) of the Act. Apart from above disallowance of Rs. 1,77,857/- u/s. 14A of the Act was also made. The Assessing Officer initiated penalty proceedings u/s. 271(1)(c) of the Act in respect of aforesaid disallowances. The Asse....

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....-operative Bank Ltd., therefore, penalty u/s. 271(1)(c) of the Act has been rightly levied. 4. We have heard the submissions made by representatives of rival sides and have perused the orders of authorities below. The assessee has challenged levy of penalty u/s. 271(1)(c) on the ground of ambiguity in specifying the charge u/s. 271(1)(c) of the Act. A perusal of assessment order shows that penalty u/s. 271(1)(c) qua disallowance u/s. 14A has been initiated by mentioning both the limbs of section 271(1)(c). The relevant extract of the Assessing Officer where penalty has been initiated reads as under : "Further, in view of above discussion, penalty proceedings u/s. 271(1)(c) of the I.T. Act, 1961, are being initiated separately, for furnis....

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....articulars of income' signifies where the assessee has furnished particulars of income but the information/documents furnished are false/wrong/incorrect or erroneous. 7. The Hon'ble Karnataka High Court in the case of Commissioner of Income Tax Vs. Manjunatha Cotton and Ginning Factory (supra) has held : "61. The Assessing Officer is empowered under the Act to initiate penalty proceedings once he is satisfied in the course of any proceedings that there is concealment of income or furnishing of inaccurate particulars of total income under clause (c). Concealment, furnishing inaccurate particulars of income are different. Thus the Assessing Officer while issuing notice has to come to the conclusion that whether is it a case of concealment ....