2015 (8) TMI 1565 - HC - Income Tax

Penalty u/s 271(1)(c) - assessment order was made u/s 153C/143(3) considering the revised return - assessee filed its revised return of income without claiming exemption under section 12AA of the Act and furnishing the computation of income as income from business and profession - HELD THAT - There is no dispute that the assessments were made under section 153(c) of the Act. The petitioner after filing the returns had filed the revised returns and had participated in the proceedings. The assessment proceedings under section 153C were not challenged. Ultimately orders of assessment were passed. Accepting the assessments taxes were paid. Thereafter, penalty proceedings have been initiated under section 271(1)(c) of the Act for concealment of particulars of income. We find that the Tribunal while dismissing the appeal filed by the assessee has dealt in its order, in detail every aspect, including the factual aspect of the matter. Thus, we find that no substantial question of law arises. Hence, the applications for admission of appeal are dismissed. Consequently appeals are not admitted.

Summary

Issues:
Admission of appeal under section 260A of the Income Tax Act, 1961 based on penalty proceedings initiated under section 271(1)(c) for furnishing inaccurate particulars of income.

Analysis:
The judgment involved three applications for admission of appeal under section 260A of the Income Tax Act, 1961, related to penalty proceedings initiated under section 271(1)(c) for furnishing inaccurate particulars of income. The notice issued by the Assistant Commissioner of Income Tax directed the assessee to furnish returns for assessment years 2005-06 to 2010-11 under sections 153C/153A of the Act. The assessee had filed original returns for the respective assessment years and later filed revised returns without claiming exemptions that were initially declared. Assessment orders were subsequently made under sections 153C/143(3) of the Act, and taxes were paid by the assessee for each year.

For the assessment years in question, penalty proceedings were initiated under section 271(1)(c) of the Act, upheld by the CIT(A), and confirmed by the Tribunal. The applications for admission of appeal were filed challenging the Tribunal's order on six consolidated questions of law. The appellant argued that the Assessing Officer did not record satisfaction during assessments, and the assessee was not given adequate opportunity to contest certain aspects. The Tribunal's order was criticized for dealing with section 271(1)(c) for the first time.

The revenue contended that since the assessee accepted the assessments, paid taxes, and did not challenge the notice or assessment under section 153C, no substantial question of law arose for admission of appeals under section 260A. The High Court noted that the assessments were made under section 153C, the assessee participated in the proceedings, accepted the assessments, and paid taxes. The Tribunal's order meticulously addressed the factual aspects, leading the Court to conclude that no substantial question of law was raised. Consequently, the applications for admission of appeal were dismissed, and the appeals were not admitted.