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TMI Blog2012 (9) TMI 589X X X X Extracts X X X X X X X X Extracts X X X X ..... 3-04. 3. The appeal has been preferred on the following substantial question of law:- "(1) Whether on the facts and circumstances of the case the Hon'ble ITAT was justified in upholding the findings of the Ld. CIT (A) in deleting the penalty u/s 271 (1) (C) of Rs. 12, 10, 000/- ignoring the fact that the assessee has deliberately concealed the particulars of income/furnished inaccurate particulars of income by way of claiming wrong status and subsequently revising the return by way of claiming excess loss, much after the detection of mistake by the Department." 4. A return was filed by Hapur Pilkhuwa Development Authority, in the capacity of Artificial Juristic Person (AJP) declaring loss for Assessment Year 2003-04. The assessment was c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of balance sheet. As regard the declaration of status and the applicability of relevant notification, the CIT (A) found that it is possible that the omission and commission had taken place under bona fide belief and that it is a well settled proposition of law that any error under bona fide belief does not constitute a reasonable cause. The penalty was accordingly deleted. 6. It was contended before the ITAT that the inaccurate particulars were disclosed regarding the status to show the increased loss declared in the original return. In the revised return, the return was corrected only after it was pointed out by AO that the assessee as a local authority would not fall within the meaning of AJP. Reliance was placed upon Dilip & Shroff ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n CIT, Ahmedabad v. Reliance Petroproducts Private Limited, (2010) 11 SCC 762, the Supreme Court explained the meaning of the words 'inaccurate particulars' and held that in order to cover under Section 271 (1) (c) there has to be concealment of particulars of the income of the assessee. As per Law Lexicon, the meaning of the word 'particular' is detail or details (in plural sense), the details of a claim, or the separate items of an account. The word 'particulars' used in Section 271 (1) (c) would express the meaning of the details of the claim made. It is not as if any statement made or any details supplied was found to be factually incorrect, would attract penalty under Section 271 (1) (c). In the case decided by the Supreme Court an inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was no necessity for asking Section 271 (1) (c) of mens rea. The object behind enactment of Section 271 (1) (cc) read with Explanation indicated was to provide remedy for loss of revenue and such a penalty was a civil liability and therefore willful concealment is not essential ingredient for attracting civil liability, as was the case in the matter of prosecution under Section 276 (c). In Dharmendra Textile Processors (Supra) no fault was found with the reasoning in Dilip N. Shroff v. CIT (Supra), where the Court explained the meaning of terms 'conceal' and 'inaccurate'. In Webster Dictionary the word 'inaccurate' defined as 'not accurate; not exact or correct; not according to truth; erroneous as an inaccurate statement, copy or transcrip ..... X X X X Extracts X X X X X X X X Extracts X X X X
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