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TMI Blog2017 (8) TMI 639X X X X Extracts X X X X X X X X Extracts X X X X ..... the concealment of particulars of income or furnishing of inaccurate particulars of such income is essential before levying any penalty u/s.271(l)(c). - Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... icer is satisfied in the course of any proceedings under this Act that any person has concealed the particulars of his income or furnished inaccurate particulars of the income. In this case, the Assessing Officer levied penalty on the assessee by observing as under: I am therefore, fully satisfied that the assessee has concealed the particular of his income and furnished inaccurate particular of income to ₹ 8,25,000/- and committed default. Such default had attracted the penalty u/s 271 (1) (c) of the IT Act. I therefore levy minimum penalty u/s 271 (1) (c) at ₹ 2,28,969/- (Rs. Two lakh twenty eight thousand nine hundred sixty nine only) which works out 100% of tax sought to be evaded as against maximum penalty leviable at ₹ 6,86,907/- (Rs Six lakh eighty six thousand nine hundred seven only) which works out at 300% of tax sought to be evaded. PENALTY CALCULATION 1 Tax on total income (Inclusive of concealed Income ) ₹ 2,28,969/- 2 Tax on Income Excluding concealed income Rs Nil 3 Difference of 1 - 2 ₹ 2,28,969/- 4 Penalty (minimum)(100% of Tax sought to be evaded) Rs 2,28,969/- 5 Maximum Penalty (300% of Tax sought to be eva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d her income on various issues. Section 271(1)(c)(iii) is explicitly clear that the penalty can be levied for concealment of particulars of income or furnishing of inaccurate particulars of income. It is the particulars of income which is the common subject matter of both the charges. The word 'conceal' as per Webster's Dictionary means "to hide, withdraw, or remove from observation; cover or keep from sight; to keep secret; to avoid disclosing or divulging." That means non-disclosure of particulars of income. On the other hand, where particulars are disclosed but such disclosure is not correct, true or accurate, it would amount to furnishing of inaccurate particulars of income. For example, in case of businessman, if a particular transaction of sale is not shown in the books, it would amount to concealment of particulars of income while sale is shown but at al lesser value, it would amount to furnishing of inaccurate particulars of income. 8. The trust of the legislature is upon the particulars of income which are either concealed or furnished inaccurately by the assessee. Therefore, we must understand the meaning of the words "particulars of income". The Tribunal had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #39;Assessee' might not disclose particular sales or dividend income or income from any source. Such instances would fall under the main provisions itself. In such cases, the burden is on the Assessing Officer to establish the existence of the charge on the basis of material on record. 10. Explanation 1 to section 271(1)(c) states that the amount added or disallowed in computing the total income of the assessees shall be deemed to be the income in respect of which particulars have been concealed. This deeming provision is not absolute one but is rebuttable one. It only shifts the onus on the assessee. Explanation 1 refers to the two situations in which presumption of the concealment of the particulars of income is deemed. It is not applicable where the charge against the assessee is furnishing inaccurate particulars of the income. The first situation is where the assessee in respect of any fact material to the computation of his total income fails to offer an explanation or offers an explanation, which is found by Assessing Officer or the CIT to be false. The second situation is where the assessee in respect of any facts material to the computation of his total income offers a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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