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TMI Blog2024 (1) TMI 1302X X X X Extracts X X X X X X X X Extracts X X X X ..... ty to the assessee by way of issuing summons in the addresses furnished and also a further opportunity to produce the creditors before the AO. It cannot be said that the penalty was levied only on the creditors having not turned up and confirmed the credits. There was absolutely no evidence produced to substantiate the credit that was recorded in the books of accounts; when there can be inferred a deliberate furnishing of inaccurate particulars of income. This is a clear case falling u/s 271(1)(c) since the assessee had merely doctored its books of accounts to show sundry credits without even the invoices leading to such credits being produced. The certificates furnished, of the so called creditors, also did not show the credits; thus bring ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2016 are extracted below :- (i) Whether on the facts and in the circumstances of this case the Tribunal was in error in adopting a finding arrived at in assessment proceeding, particularly in view of the settled law that in penalty proceeding the taxing authority is bound to consider the matter afresh on the material before it with the burden of proof resting on the revenue? (ii) Whether in view of the disclosure of Sundry trade Creditors in the return of income and in absence of any fresh material in penalty proceedings pointing to a conclusion to the contrary the order of the Tribunal in the confirmation of penalty is erroneous in law? (iii) Whether in view of acceptance of the entirety of the purchases in the assessment proceeding and a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y on Anantharam Veerasinghaiah Co. v. Commissioner of Income Tax, Andhra Pradesh reported in 1980 Supp SCC 13 and Dilip N. Shroff v. Joint Commissioner of Income Tax, Mumbai and Another reported in (2007) 6 SCC 329 to further buttress his contentions. 4. Smt. Archana Sinha, Learned Senior Standing Counsel for the Income Tax Department points out that the assessee was given an opportunity to produce the sundry creditors, which he did not do. But for the entry in the books of accounts there was no materials produced, like invoices, to establish the transactions, which led to the credit as recorded in the books of accounts. Reliance was placed on a Division Bench judgment of the High Court of Kerala in Commissioner of Income Tax v. M/s AL-Amee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be leviable. 6. Having considered the decisions and the provision at Section 271(1)(c), we are of the opinion that the questions of law are to be answered against the assessee. Anantharam Veerasinghaiah (supra) was at a time when clause (c) of Section 271(1) penalized deliberate furnishing of inaccurate particulars of income, which led to the Hon ble Supreme Court holding that the revenue should find conscious concealment of particulars of income or deliberate furnishing of inaccurate particulars. The word deliberately was omitted with retrospective effect from 01.04.1964. Dilip N. Schroff (supra) found that deletion of the word deliberately may not have significance since the concealment and furnishing of inaccurate particulars of inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herein the burden under Section 271(1)(c) is found entirely on the assessee and there cannot be any shifting of burden on to the revenue, especially in the context of no material having been placed before the Assessing Officer to substantiate the sundry credits claimed. The mere disclosure of the name and address of the sundry creditors cannot lead to substantiation of the credits especially when there was no evidence produced regarding the transactions which led to the credit. The mere acceptance of the entirety of the purchases would not lead to substantiation of the credits claimed; since the purchases which led to the credit, has not been established before the Assessing Officer. There was no material available on record before the Asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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