TaxTMI 
TaxTMI 
TaxTMI 
2020 (1) TMI 492
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.... in the reassessment proceedings, re- computed the book profit u/s 115JB of the Act by disallowing the claim for deduction of Rs. 43.00 lakhs, being the amount relating to waiver benefits received by the assessee from banks on account of One Time Settlement of Loan. The assessee, though disclosed the same in the Profit and Loss account as its income, yet excluded it from Net Profit while computing book profit u/s 115JB of the Act. Hence the AO, in the reassessment proceedings, re-computed the book profit by disallowing the above said claim. The Ld CIT(A) confirmed the same and the appeal filed by the assessee before Tribunal was also dismissed. Hence the assessing officer passed penalty order imposing a penalty of Rs. 4,45,860/- u/s 271(1)(....
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.... Act. 5. We heard Ld D.R and perused the record. The penalty u/s 271(1)(c) of the Act is levied either of the two limbs, viz., for concealment of particulars of income or furnishing of inaccurate particulars of income. We notice that the assessing officer has not mentioned the nature of charge in the assessment order and has only stated that "Penalty proceedings u/s 271(1)(c) is initiated separately". In the penalty notice also, the AO has not struck off inapplicable charge/limb. Hence it appears that he was not clear about the reason for which the penalty proceedings have been initiated. The following observations made by the AO in the penalty order would show that the AO was not clear in his mind about the charge under which he has impos....
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....item of income or a portion thereof from the knowledge of the income tax authorities." In Webster's Dictionary, "inaccurate" has been defined as: "not accurate, not exact or correct; not according to truth; erroneous; as an inaccurate statement, copy or transcript." 15. It signifies a deliberate act of omission on the part of the assessee. Such deliberate act must be either for the purpose of concealment of income or furnishing of inaccurate particulars. 16. The term 'inaccurate particulars' is not defined. Furnishing of an assessment of value of the property may not by itself be furnishing of inaccurate particulars. Even if the explanations are taken recourse to, a finding has to be arrived at having regard clause (a) o....
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....matter afresh as the question has to be considered from a different angle. 19. It is now a well-settled principle of law that the more is the stringent law, more strict construction thereof would be necessary. Even when the burden is required to be discharged by an assessee, it would not be as heavy as the prosecution. [See P.N. Krishna Lal and Others v. Govt. of Kerala and Another, 1995 Supp (2) SCC 187] 20. The omission of the word "deliberate", thus, may not be of much significance. 21. Section 271(1)(c) remains a penal statute. Rule of strict construction shall apply thereto. Ingredients of imposing penalty remains the same. The purpose of the legislature that it is meant to be deterrent to tax evasion is evidenced by the increase....
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....inaccurate particulars of such income'. It is implicit in the word 'concealed' that there has been a deliberate act on the part of the assessee. The meaning of the word 'concealment' as found in Shorter Oxfort English Dictionary, third edition, Volume I, is as follows : 'In law, the intentional suppression of truth or fact known, to the injury or prejudice of another.' The word 'concealment' inherently carried with it the element of mens rea. Therefore, the mere fact that some figure or some particulars have been disclosed by itself, even if it takes out the case from the purview of non-disclosure, it cannot by itself, even if it takes out the case from the purview of nondisclosure, it cannot by itself ta....