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2020 (3) TMI 865

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....t 'the Act'). Identical grounds have been raised in all the three appeals in same set of circumstances. Accordingly, we heard all the three appeals together and disposed off by way of this consolidated order for convenience and to avoid repetition of facts. 2. Grounds of appeal in ITA No. 2648/Del/2017 for assessment year 2005-06 is reproduced as under: 1. Under the facts and the circumstances of the case, penalty order passed u/s 271(l)(c) of the Act by the Id. A.O. and confirmed by the Id. CIT(A) is invalid & bad in law as from the notice issued u/s 274 r.w.s 271(l)(c) of the Act it is not discemable as to whether the penalty proceedings was initiated for furnishing of inaccurate particulars of income or concealment of income and ther....

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....he three assessment years having amounts as follows: S. No. Date of order Amount of penalty levied For Assessment Year 1 10.03.2015 41,23,947/- 2005-06 2. 09.03.2015 84,97,500/- 2009-10 3. 19.03.2015 50,98,500/- 2010-11 3.1 The assessee filed appeals before the Ld. CIT(A) against penalty in all the three assessment years and objected that the Assessing Officer has not specified reasons for levy of penalty under section 271(1)(c) of the Act in the notice issued while initiating the proceedings. The assessee also objected the penalty on ground of merit. The Ld. CIT(A) upheld the penalty on the ground that the assessee failed to provide the explanation and there was no error or infirmity in the penalty initiated by....

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.... in the appellate proceedings against the penalty order u/s 271(1 )(c) of the Act, therefore, it is clearly established that these transactions relating to share capita! share premium money received, arc not proved to be genuine and the same is the undisclosed income of the appellant itself. Accordingly, it is clear that the appellant has not only concealed the income by furnishing inaccurate particulars, but has also deliberately given wrong verification in the return of income . filed for the A.Y. 2005-06. In these facts and circumstances of the case, it is clear that in all the proceedings, as indicated above, the appellant failed to prove the genuineness of the alleged transactions of share capital/ share premium money received, during ....

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....ee has concealed the particulars of its income and for that default penalty proceedings u/s 271(1)(c) of the Act are also being initiated." Para No. 13 of Page No. 5 of the A.O. order Penalty Notice The Penalty notice states that: "Whereas in the course of proceedings before me for the A.Y. 2005-06, it appears to me that you have concealed the particulars of your income or furnished inaccurate particulars of such income." Para No.1 of Notice Dated 30.12.2011 Penalty order u/s 271(1)(c) The A.O. held that: "having considered the various arguments put forth by the assessee, I hold the assessee in default for concealing its income by furnishing inaccurate particulars of its income. Accordingly, Penalty u/s 271(1)(c) of the Income Tax....

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....fficer is not certain on the charges the penalty has been levied whether it is concealment of income or furnishing of inaccurate particulars of income. The dictionary meaning of the word 'conceal' is 'to hide, withdraw or remove from observation'; 'cover or keep from sight'; 'to avoid disclosing or divulging'. Thus, concealment of 'particular of income' means non-disclosure of particulars of income. On the other hand, where particulars are disclosed but such disclosure is not correct, true or accurate, it would amount to 'furnishing of inaccurate particulars of income'. Thus, the two changes of levy of penalty are different. 8. The Hon'ble Karnataka High Court in the case of Manjunatha Cotton and Ginning Factory (supra) has cancelled the ....