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TMI Blog2022 (2) TMI 926X X X X Extracts X X X X X X X X Extracts X X X X ..... 1411, 1408, 1409, 1410 and 2132 /Mds/2003, relating to the respective assessment years 1979-80, 1976-77, 1978-79, 1976-77, 1975-76 and 1977-78. 2.By order dated 01.08.2011, this court admitted the aforesaid tax case appeals on the following substantial question of law: "Whether on the facts and in the circumstances of the case, the ITAT was right in holding that penalty was leviable under section 271 (1) (c) of the Income Tax Act?" 3.The brief facts of the case would run thus: 3.1 The appellant viz., M/s.Ramamurthy Metal Decorating Industries P. Ltd is engaged in the business of card making, tin printing and purchase and sale of safety matches; and one A.Ramamurthy is its Managing Director. For the assessment years in question, while s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich, no reply was filed. The assessing officer completed the assessment based on the settlement arrived at between the assesses and the department. The details of the penalty imposed are as under:- M/s.Ramamurthy Metal Decorating Ind. P. Ltd. 1979-1980 Rs. 2,33,596/- 1975-1976 Rs. 3,81,243/- 1976-1977 Rs. 37,234/- 1978-1979 Rs. 3,00,530/- Sri A.Ramamurthy 1976-1977 Rs. 1,10,442/- 1977-1978 Rs. 10,330/- 3.4 Challenging the orders of assessment, the appellants filed appeals before the CIT(A), who confirmed the penalties and dismissed the appeals. Aggrieved by the same, the appellants went on further appeals before the Tribunal, which also dismissed the appeals filed by the appellant. Therefore, the present tax case appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the substantial question of law involved herein, we consider it necessary to quote below the relevant findings of the appellate authorities, for ready reference: First Appellate Authority "The second aspect of the case is the merit of imposition of the penalties. Although my primary decision is that all the penalties are to be confirmed because otherwise the concerned settlements stand vitiated, in my view even from an independent angle, these cases definitely warrant imposition of penalties. By certain ingenious and intricate adjustments in accounts, through kite flying entries of rebates given and received, the 14 Members of the group kept on playing the game of inter-diversions of profits for 6 to 7 years. The Government for almost 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome in a planned manner for several years. Penalty under section 271(1)(c) under such circumstances is imposable. We therefore uphold the orders of authorities below." It is thus evident from the aforesaid findings of the authorities below that the appellants / assesses had concealed income, which was accepted after detection and the assessment was completed as per the terms of the settlement, which stipulated minimum penalty under section 271(1)(c). Based on the same, the assessing officer initiated the penalty proceedings by issuing show cause notices, to which, the appellants/assesses did not file any reply to substantiate their stand that there was no concealment of income. Therefore, the assessing officer imposed penalties on the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al proceedings. The law does not provide that when an assessee makes a voluntary disclosure of his concealed income, he had to be absolved from penalty." Applying the ratio decidendi laid down in the aforesaid decision to the facts of the present case, wherein, the appellants had disclosed the income, after detection by the department and as per the terms of settlement, the assessing officer initiated the penalty proceedings, to which, the appellants / assesses did not submit any explanation to the effect that there was no concealment of income or furnishing of inaccurate particulars of such income, which culminated in imposition of penalties under section 271(1)(c), we do not find any infirmity or illegality in initiating the penalty proc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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