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TMI Blog2013 (9) TMI 751X X X X Extracts X X X X X X X X Extracts X X X X ..... the facts and circumstances of the case, the ITAT erred in law in deleting the penalty imposed u/s. 271-1C on the ground that assessee had offered an explanation regarding calculation u/s. 115-JB and that concealment had no role to play and it did not lead to tax evasion. II. Whether on the facts and circumstances of the case, the ITAT was erred in law in coming to a conclusion that there was no concealment as assessment was not done under normal procedure which is contrary tot he Apex Court's finding in the matter of CIT Vs. M/s Nalwa Sons Investments Ltd. III. Whether on the facts and circumstances of the case, the ITAT erred in deleting the penalty ignoring the provisions and language of Section 271-1C and the phrase "inaccurate partic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (1) (c) of the Act is imposable only if the assessee has either (a) concealed the particulars of income; or (b) furnished inaccurate particulars of income. The language used in clause (c) of section 271 (1) is 'has concealed the particulars of his income, or furnished 'inaccurate particulars of such income. Thus, both in case of concealment and inaccuracy, the term 'particulars of income' has been used. The legislature has not used the words 'concealed his income. From this it would be apparent that penal provision would operate when there is a failure to disclose "fully or truly all the particulars of income" which are material to the computation of income. The term 'particular of income' refers to the fact which leads to the correct compu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was concealment but that had its repercussions only when the assessment was done under the normal procedure. The assessment as per the normal procedure was, however, not acted upon. On the contrary, it is the deemed income assessed u/s 115JB which has become the basis of assessment as it was higher of the two. Tax is thus paid on the income assessed u/s 115JB. Hence, when the computation was made u/s 115JB, the concealment had no role to play and was totally irrelevant. Therefore, the concealment did not lead to tax evasion at all. The upshot of the aforesaid discussion would be to sustain the order of the Tribunal, though on different grounds. Therefore, while the reasoning and approach of the Tribunal is not tenable, for the reasons discl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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