2011 (4) TMI 648 - HC - Income Tax

Penalty - penalty in respect of the stamp duty and registration charges which was not disclosed in the returns filed by him - explanation offered by the assessee was that he had sufficient income, he is an individual and he is not expected to file the schedule showing these particulars and there was no intention to avoid payment of tax - assesses is a mining contractor He has purchased the property and got it registered - His returns did not disclose the source from which the registration charges was drawn - Though he is an individual and he is not expected to maintain accounts showing the current assets and liabilities, income etc., his explanation that he was innocent and he was not aware of the legal requirement cannot be accepted - it would not constitute a ground not to levy penalty and finally - it would not constitute a ground not to levy penalty - Appeal dismissed thus.

Summary

Issues:
Challenge to penalty for non-disclosure of stamp duty and registration charges in tax returns.

Analysis:
The judgment pertains to an appeal challenging a penalty imposed by the Tribunal for not disclosing stamp duty and registration charges in the tax returns. The assessee, a mining contractor, argued that being an individual, he was not expected to file a schedule showing these particulars and had no intention to avoid tax payment. However, the assessing authority noticed the non-disclosure during scrutiny, amounting to Rs. 1,99,640. The assessee paid the tax and interest promptly but was liable for penalty. The court noted that despite being an individual, the assessee's claim of innocence and lack of awareness of legal requirements was not acceptable. The authorities, after due consideration, upheld the penalty, finding no grounds to waive it, leading to the dismissal of the appeal.

Conclusion:
The High Court dismissed the appeal as no substantial question of law was found to be involved in the case. The judgment upholds the penalty imposed on the assessee for the non-disclosure of stamp duty and registration charges in the tax returns, emphasizing the importance of compliance with legal requirements even for individual taxpayers.