TaxTMI 
TaxTMI 
2024 (12) TMI 105
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....y of Rs. 15 Lakh by way of taking accommodation entry through layering of funds through accounts of other companies during the financial year. The notice was sent to the assessee through ITBA system and registered post but there was no compliance from the side of the assessee, as a result of which, an amount of Rs. 15 Lakh has been treated as unaccounted money of the assessee and a penalty proceeding u/s 271(1)(c) of the Act is being initiated. An order u/s 271(1)(c) of the Act which is being the impugned order of this appeal has been passed by the Income Tax Department on 15.09.2021 on account of concealment of particulars of income. The said order u/s 271(1)(c) of the Act was placed before the Ld. CIT(A) wherein also appeal of the assessee has been dismissed by holding that it is very clear that the appellant has furnished inaccurate particulars of income which attracts the provisions of Section u/s 271(1)(c) of the Act. Being aggrieved and dissatisfied with the impugned order, the present appeal has been preferred. 1.2. The ld. Counsel for the assessee challenges the impugned order on various grounds thereby citing several decisions of the Tribunal as well as high court that t....
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....rendered vide Order dated 06.11.2015 in ITA No. 1303/KQL/2010 7. Principal CIT -vs.- Bijoy Kr. Agarwal (ITAT No. 272 of 2017 dated 02.04.2019) Cal H.C. 8. S.D.Constructions, Kolkata vs A.C.I.T.,Circle-49(1), Kolkata on 1 October, 2021 (I.T.A. No. 243/Ko1/2021) 1.4. Ld. Counsel for the assessee further submits that imposition of penalty, concealment of particular of income or furnishing inaccurate particulars of income was solely on the basis of unlawful addition of Rs. 15 Lakh. The ld. Counsel for the assessee submits that the order passed by the Ld. AO is an ex-parte order and completely on surmises and conjectures. According to him, the Ld. AO chose to rely on the random, vague, incomplete or unverified in facts false information of the third party without conducting any independent enquiry. The ld. Counsel for the assessee submits that assessee company duly filed return of income showing loss of Rs. 2,59,62,933/- for the AY 2012-13 both u/s 139(1) and 148 of the Act and disclosing all the particulars of its true income with audited books of accounts, balance sheet, profit and loss account and other related documents. According to him, all the activities in transaction in re....
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....ords a finding regarding the existence of any said grounds mentioned therein and then penalty proceedings is initiated, in the notice to be issued under Section 274, they could conveniently refer to the said order which contains the satisfaction of the authority which has passed the order. However, if the existence of the conditions could not be discerned from the said order and if it is a case of relying on deeming provision contained in Explanation 1 or in Explanation 1(B), then though penalty proceedings are in the nature of civil liability, in fact, it is penal in nature. In either event, the person who is accused of the conditions mentioned in Section 271 should be made known about the grounds on which they intend imposing penalty on him as the Section 274 makes it clear that assessee has a right to contest such proceedings and should have full opportunity to meet the case of the Department and show that the conditions stipulated in Section 271(l)(c) do not exist as such he is not liable to pay penalty. The practice of the Department sending a printed form where all the ground mentioned in Section 271 are mentioned would not satisfy requirement of law when the consequences of ....
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....sition of penalty cannot validate the order of penalty which, when passed, was not sustainable. 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 of income or is it a case of furnishing of inaccurate particulars. The Apex Court in the case of T. Ashok Pai v. CIT [2007] 292 ITR 11/161 Taxman 340 at page 19 has held that concealment of income and furnishing inaccurate particulars of income carry different connotations. The Gujarat High Court in the case of CIT v. Manu Engg. [1980] 122 ITR 306 and the Delhi High Court in the case of CIT v. Virgo Marketing (P.) Ltd. [2008] 171 Taxman 156, has held that levy of penalty has to be clear as to the limb for which it is levied and the position being unclear penalty is not sustainable. Therefore, when the Assessing Officer proposes to invoke the first limb b....
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....s for taxation and paid tax liability of Rs. 15,00,000/-. The Assessing Officer completed the assessment as unexplained investments and passed order u/s. 143(3) of the Act dated 23.11.2011. The Id. Assessing Officer also initiated penalty proceedings by issue of notice u/s. 274 r.w.s 271(l)(c) of the Act On appeal, the Commissioner of Income Tax (Appeals) dismissed the appeal. On further appeal, the Hon'ble Tribunal held as under: "7. We heard rival submissions, perused the material on record and judicial decisions cited. The Id. Authorised Representative expressed and emphasized on the grounds that the assessee has voluntarily accepted the income in the assessment proceedings and genuine explanations were provided for omitting to include in the balance sheet. The explanations are bonafide, considering the age of the assessee and sources of income declared in the income tax return. The assessee is a senior citizen and also deriving income from marriage hall, rental income and income from other sources and regularly filing income tax returns. The deposits in Lakshmi Vilas Bank pertains to sale of inherited jewellery, which assessee has treated as persona! Asset and omitted....