2026 (8) TMI 1242

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....f the penalty order dated 26.09.2022 u/s 271(1)(c) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') passed by the Income Tax Department for AY: 2016-17. 2. Heard and perused the records. On hearing both the sides we find that the limited issue in this appeal is the challenge of penalty levied u/s 271(1)(c) on allegation that it was only upon notice u/s 148 the return was filed and thus there was concealment of income by the assessee. 3. Ld. AR contended that the assessee had deposited entire tax but failed to file ITR within time limit u/s 139 of the Act. However, subsequently, the ITR was filed in response to notice u/s 148 and the assessment was completed at the returned income without any variation. 3.1 It was ....

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....1) of section 153 a return of his income which he is required to furnish under section 139 in respect of any assessment year commencing on or after the 1st day of April, 1989, and until the expiry of the period aforesaid, no notice has been issued to him under clause (i) of sub-section (1) of section 142 or section 148 and the Assessing Officer or the Joint Commissioner (Appeals) or the Commissioner (Appeals) is satisfied that in respect of such assessment year such person has taxable income, then, such person shall, for the purposes of clause (c) of this sub-section, be deemed to have concealed the particulars of his income in respect of such assessment year, notwithstanding that such person furnishes a return of his income at any time aft....

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....aped assessment if the reassessment proceedings had not been initiated and therefore, the assessee's argument that since assessed income in the same as returned income and therefore no penalty u/s 271(1)(c) can be levied is without any basis. In this regard, various judicial citations relied upon by the assessee are clearly distinguishable. We note that the assessee's case is squarely covered by the provisions of Explanation 3 to section 271 as per which a case of non-filing of return of income is deemed to be a case of concealment notwithstanding that such person furnishes return of his income in pursuance to notice u/s 148. 6.1 However, the alternative plea of the assessee that the tax sought to be evaded has to be comput....