2017 (5) TMI 1589

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... tute satisfaction. The Hon’ble Supreme Court in the case of Union of India vs. Dharmendra Testile Processors [2008 (9) TMI 52 - SUPREME COURT] has held that willful concealment is not an essential ingredient for attracting civil liability. The assessee intentionally claimed the capital expenditure as revenue expenditure on new project (i.e. cement), which was separate activity of the assessee comp .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... e order passed by the ld. Tribunal upholding the order of the Ld. Cit(A) and confirming the penalty of ₹ 67,46,313/- u/s 271(1) (c) on the assumption that ld. Tribunal in quantum proceedings has affirmed the disallowance or ₹ 1,73,53,860/- is not perverse? 3. Counsel for the appellant has contended that the Tribunal has seriously committed an error in setting aside the order of th .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ights in the assessment year 2009-10. 4. However, the Tribunal observed as under:- The ITAT had confirmed the addition in quantum proceedings at ₹ 1,73,53,860/- and concluded that these expenses are capital in nature. The expenses claimed by the assessee were not related to its business but were related to new project. The assessee has concealed the particulars of income by claimin .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... sessee are on mens rea or intention to conceal the particulars of income is to be proved by the revenue. The Hon ble Supreme Court has held in the case of Mark Data P Ltd. vs. CIT (2013) 358 ITR 593 (SC) that explanation-1 to Section 271 (1)(c) of the Act raises a presumption of concealment when a difference is noticed by the Assessing Officer between the reported and assessed income. The burden i .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... eme Court in the case of Union of India vs. Dharmendra Testile Processors 306 ITR 277 has held that willful concealment is not an essential ingredient for attracting civil liability. The assessee intentionally claimed the capital expenditure as revenue expenditure on new project (i.e. cement), which was separate activity of the assessee company from the existing business i.e. production of fertili .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X