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TMI Blog2025 (4) TMI 726X X X X Extracts X X X X X X X X Extracts X X X X ..... of the erstwhile Companies Act, 1956, now Section 2 (45) of the Companies Act, 2013. The appellant Company/assessee is engaged in the business of providing/rendering extra high voltage power transmission services through its voltage power sub-stations (132 KV & above) and transmission lines throughout the State of Chhattisgarh. On 29-11-2016, the appellant filed its return of income for the assessment year 2016-17 declaring a total income of nil {after setting off the unabsorbed loss of Rs. 14.64 crores (approx.)}. Further, the book profits declared by the appellant in accordance with the provisions contained in Section 115JB of the IT Act 'Minimum Alternate Tax' (MAT) was to the extent of Rs. 26.90 crores (approx.). On 1-12-2016, the statutory audit was completed by the Auditor appointed by the C&AG as required under the provisions of Section 143 of the Companies Act, 2013 certifying the net profit before tax at Rs. 3574.90 lakhs based on the Audited Financial Statements. The tax audit completed by the Auditor and the Tax Audit Report in Form No. 3CA/3CD under Section 44AB of the IT Act was furnished online on 15-12-2016 reporting the net profit before tax at Rs. 3574.90 lakhs ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich the appellant refuted and filed response stating that variation in the figure of book profit has occurred due to inadvertent data feeding mistake in the return of income hence, the penal proceedings initiated under Section 271 (1) (c) of the IT Act be dropped. 3. By order dated 29-1-2022, the AO imposed a penalty of Rs. 2,72,92,117/- on the appellant under Section 271 (1) (c) of the IT Act alleging that the appellant has tried to furnish inaccurate particulars of income and thereby sought to evade tax. Feeling aggrieved against the order imposing penalty dated 29-1-2022, the appellant filed appeal under Section 250 of the IT Act before the CIT (Appeals) in Form No.35 questioning the order of penalty holding that it was bona fide mistake and it has already been disclosed in reply dated 5-11-2019, delivered on 22-11-2019, and Tax Audit Report has already been filed in Form No. 3CA/3CD conducted under Section 44AB of the IT Act on 15-12-2016 and later-on in the revised return of income filed on 26-3-2018 along with tax audit report, audited annual financial statements and report of the auditor, and therefore the penalty order be set aside. 4. The CIT (Appeals) by order dated 15- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enalty under Section 271 (1) (c) of the IT Act, as such, the appeal deserves to be dismissed. 8. We have heard learned counsel for the parties and considered their rival submissions made herein-above and also went through the record with utmost circumspection. 9. In order to consider the plea raised at the Bar, it would be appropriate to notice Section 271 (1) (c) of the IT Act which states as under:- "271. Failure to furnish returns, comply with notices, concealment of income, etc.-(1) If the Assessing Officer or the Commissioner (Appeals) in the course of any proceedings under this Act, is satisfied that any person- * * * (c) has concealed the particulars of his income or furnished inaccurate particulars of such income." 10. A careful perusal of the aforesaid provision would show that in order to be covered under the mischief of Section 271 (1) (c) of the IT Act, there has to be concealment of the particulars of the income of the assessee or secondly, the assessee must have furnished inaccurate particulars of his income. Both the ingredients are independent to each other, if the assessee has either concealed the particulars of his income or furnished inaccurate partic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be doubted, but the absence of due care, in a case such as the present one, does not mean that the assessee is guilty of either furnishing inaccurate particulars or attempting to conceal its income." 12. Similarly, in Reliance Petroproducts Private Limited's case (supra), their Lordships have considered Section 271 (1) (c) of the IT Act and also considered the words "particulars" and "inaccurate particulars" employed in Section 271 (1) (c) and held as under:- "10. ... ... As per Law Lexicon, the meaning of the word "particular" is a detail or details (in plural sense); the details of a claim, or the separate items of an account. Therefore, the word "particulars" used in Section 271(1) (c) would embrace the meaning of the details of the claim made. ..." * * * 13. ... It was pointed out that the term "inaccurate particulars" was not defined anywhere in the Act and, therefore, it was held that furnishing of an assessment of the value of the property may not by itself be furnishing inaccurate particulars. * * * 17. We are not concerned in the present case with mens rea. However, we have to only see as to whether in this case, as a matter of fact, the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ected in the accounts of the assessee, and observed as under:- "7. So far as the question of penalty is concerned the items which were not included in the turnover were found incorporated in the appellant's accounts books. Where certain items which are not included in the turnover are disclosed in the dealer's own account books and the assessing authorities include these items in the dealer's turnover disallowing the exemption penalty cannot be imposed. The penalty levied stands set aside." 14. Reverting to the facts of the case in light of the aforesaid decisions of the Supreme Court, it is quite vivid that in the instant case, the assessee has uploaded the Tax Audit Report in Form No.3CA/3CD conducted under Section 44AB of the IT Act in the portal of the Income Tax Department reporting the net profit before tax at Rs. 3574.90 lakhs based on Audited Financial Statements and the Tax Audit Report was also filed along with its return of income on 26-3-2018 before the assessing authority i.e. prior to selection of the case of the appellant for scrutiny assessment on 9-8-2018 and further during the course of assessment proceedings, on 22-11-2019, the assessee, on its ow ..... 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