TaxTMI 
TaxTMI 
2025 (2) TMI 1519
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....ld that erroneous claim amounts to furnishing inaccurate particulars of income and such finding has been established by the AO in the assessment order. 2. Whether on facts and circumstances of the case, the assessee was justified in raising the grounds of appeal that notice u/s. 271(1)(c) was bad in law when he was aware of the reasons for initiation of penalty u/s. 271(1)(c) of the Act in light of discussions in the Assessment Order and therefore, the notice issued u/s. 271(1)(c) of the Act was a valid notice in view of the decision of Hon'ble High Court of Bombay in Ventura Textiles Ltd. vs. Commissioner of Income Tax, Mumbai City-II [2020] 117 taxmann.com 182(Bombay)?" 3. The appellant craves leave to add, amend, alter vary and/or withdraw any or all the above grounds of appeal." 3. Facts in Brief:- The assessee is a Private Limited Company engaged in the business of trading in consumer items. For the year under consideration, the assessee filed its return of income under section 139 of the Act on 27/10/2015. The case was selected for scrutiny and statutory notices were issued and served upon the assessee. The Assessing Officer completed assessment under....
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....n fact this disclosure of undisclosed receipt was made by assessee when it was pointed out during the course of assessment proceedings. Another fact is that assessee has already booked entire expenses against the difference in receipt of Rs. 1,25,428/- hence, no deduction in respect of any expenditure or allowance shall be allowed to the assessee. Indeed it was purely undisclosed income which was noticed during assessment proceedings. Also assessee could not substantiate the reason for non consideration of receipts in computation of total income. He wishfully didn't disclose the receipts of Rs. 1,25,428/-. The AO rightfully added undis-closed income of Rs. 1,25,428 and initiated penalty proceedings u/s. 271(1)(c) for concealing the income. The reply filed by assessee is perused but the same is not acceptable in light of above discussion. Therefore on the facts and circumstances, I am satisfied that the assessee has concealed particulars of his income and penalty u/s. 271(c) is leviable on the issue. In view of the above discussion, it is clear that the assessee has failed to offer any valid explanation/ reasonable cause even during the penalty proceedings. I a....
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....k the loss on sale of fixed assets, and wrongly claimed the same as expenditure. Therefore Rs. 4,02,50,000/- was rightly added to the total income of assessee on account of incorrect claim loss on Capital Assets. In response to the notices issued the assessee submitted that "The assessee begs to submit that while filing of return of income the employee of the assessee had inadvertently didn't added back the loss on sale of fixed assets to the income but the same has added back in fixed asset schedule i.e. book of assets or working & claiming of depreciation as per Income Tax Act, 1961. TIE oversight by the employee was not at all intentional. There was a separate line item indicted loss on fixed assets of Rs. 4.02 crore in the profit & loss Account which was omitted to be added back in the computation. The error went unnoticed by the tax auditor as well as the same was overlooked while certifying the Profit & loss account by the Accountant while preparing the computation or income. Moreover the assessee company due to negative business sentiments had incurred heavy losses in the current year as well as in future gears resulting in non set off of any toss carried forwar....
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.... A. O during both the proceedings. 4.4 In the case of T. Ashok Pai Vs. CIT (2007) 161 Taxman 340, 292 ITR 11 (SC). The Hon'ble court has observed as follows: "Penalty under clause c of Sub-Section 1 of Section 271 of the Income-tax Act, 1961, if the Assessing Officer or the Commissioner of Income Tax (Appeals) during the course of the Assessment Proceedings under the Act is satisfied that any person has 'concealed' or 'furnished inaccurate particulars of income'. The words 'concealed' or 'furnished inaccurate particulars of income' has been defined either in this Section nor any where else of the Act. One thing is certain that these two circumstances are not identical in details although they may lead to the same effect, namely, keeping a certain portion of the income. The word 'conceal' is derived from the Latin word 'concelare' which implies to 'hide'. It signifies a deliberate act of omission on the part of the assessee. A mere omission or negligence would not constitute a deliberate act suppressioveri or suggestiofalsi - 4.5 The approach of the appellant towards the assessment proceedings as ....