TaxTMI 
TaxTMI 
2021 (7) TMI 137
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.... 2013-2014. 2. The assessee has raised the following grounds of appeal: 1. The learned CIT (Appeals)-2, Vadodara grossly erred in law and on facts in upholding penalty of Rs. 2,32,240/- u/s.271(1)(c) in respect of addition of Rs. 2,11,575 for Cessation of liability and addition of Rs. 5,00,000 in respect of Income from other sources. 2. The learned CIT(Appeals) erred in not appreciating legally and factually the submission dt.31/07/2017. 3. The interconnected issued raised by the assessee is that the learned CIT (A) erred in confirming the penalty of Rs. 2,32,240/- imposed under section 271(1)(c) of the Act. 4. Briefly stated facts are that, the assessee is an individual and engaged in the business of merchant exports of pharmaceutic....
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....r, the AO disregarded the contention of the assessee by observing that the assessee has furnished the inaccurate particulars of income and concealed the particulars of income and levied the penalty of Rs. 2,32,240/- being 100% of the amount of tax sought to be evaded . 5. Aggrieved assessee preferred an appeal before the learned CIT (A) who confirmed the penalty imposed by the AO by holding as under: 4.2.1. In respect of addition of Rs. 2,11,575/- being the Cessation of' liability u/s 41(1), I find that the notices issued u/s 136 were returned unserved with the remark "left" . When the factual position was pointed out to the appellant vide Order Sheet dated 18.01.2016, it was clarified that these parties have closed their business an....
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....disclosed. Undisputedly, the appellant has never disclosed these facts in the return of income and also failed to furnish documentary evidences in respect of above claim of expenditure. In fact, the appellant has tried to mislead the department by not disclosing income of Rs. 5,00,000/- consciously and hence I hold that the appellant is liable for penal consequences on this account for concealment of particulars of income. Accordingly, the penalty imposed on this account is confirmed. 6. Being aggrieved by the order of the ld. CIT-A, the assessee is in appeal before us. 7. The ld. AR before us filed a paper book running from pages 1 to 38 and submitted that the liability of Rs. 2,11,575/- has been paid by the assessee in the subsequent as....
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....term 'inaccurate' signifies deliberate act or omission on the part of the assessee. As such, the details/informations contained in the return of income /financial statements /audit report which are not correct according to truth, and were furnished by the assessee with the dishonest intent shall be treated as inaccurate particulars. In holding so, we find support and guidance from the judgment of Hon'ble Supreme Court in the case of Reliance Petroproducts (P) Ltd (supra). We are not concerned in the present case with the mens rea. However, we have to only see as to whether in this case, as a matter of fact, the assessee has given inaccurate particulars. In Webster's Dictionary, the word "inaccurate" has been defined as :- "not acc....
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....enged by the authorities below. In view of the above, we are of the opinion that the assessee has made sufficient disclosures in the financial statements. Therefore, the assessee should not be penalized on account of the mistake committed by him inadvertently as discussed above. Therefore, we are reluctant to confirm the penalty levied by the authorities below. 9.3 In holding so, we find support and guidance from the judgment of Hon'ble Supreme Court in the case of Price Waterhouse Coopers Pvt. Ltd. vs CIT reported in 25 taxmann.com 400 wherein, it was held as under: "The contents of the Tax Audit Report suggest that there is no question of the assessee concealing its income. There is also no question of the assessee furnishing any inacc....