2024 (1) TMI 1302

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....tial questions of law raised by order dated 20.05.2016 are extracted below :- "(i) Whether on the facts and in the circumstances of this case the Tribunal was in error in adopting a finding arrived at in assessment proceeding, particularly in view of the settled law that in penalty proceeding the taxing authority is bound to consider the matter afresh on the material before it with the burden of proof resting on the revenue? (ii) Whether in view of the disclosure of Sundry trade Creditors in the return of income and in absence of any fresh material in penalty proceedings pointing to a conclusion to the contrary the order of the Tribunal in the confirmation of penalty is erroneous in law? (iii) Whether in view of acceptance of the en....

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....n a penalty imposed, is the contention. Learned counsel would rely on Anantharam Veerasinghaiah & Co. v. Commissioner of Income Tax, Andhra Pradesh reported in 1980 Supp SCC 13 and Dilip N. Shroff v. Joint Commissioner of Income Tax, Mumbai and Another reported in (2007) 6 SCC 329 to further buttress his contentions. 4. Smt. Archana Sinha, Learned Senior Standing Counsel for the Income Tax Department points out that the assessee was given an opportunity to produce the sundry creditors, which he did not do. But for the entry in the books of accounts there was no materials produced, like invoices, to establish the transactions, which led to the credit as recorded in the books of accounts. Reliance was placed on a Division Bench judgment of t....

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....ncome concealed having only reduced the returned loss, penalty was held to be leviable. 6. Having considered the decisions and the provision at Section 271(1)(c), we are of the opinion that the questions of law are to be answered against the assessee. Anantharam Veerasinghaiah (supra) was at a time when clause (c) of Section 271(1) penalized 'deliberate' furnishing of inaccurate particulars of income, which led to the Hon'ble Supreme Court holding that the revenue should find conscious concealment of particulars of income or deliberate furnishing of inaccurate particulars. The word 'deliberately' was omitted with retrospective effect from 01.04.1964. Dilip N. Schroff (supra) found that deletion of the word 'deliberately' may not have signi....