Law:

Section:

Section 271(1)(c) of the Income-tax Act, 1961 - Penalty - For concealment of income - Assessment year 1994-95 - Whether mere non-furnishing of a return per se does not tantamount to concealment within meaning of section 271(1)(c), unless Explanation 3 of section 271(1) is attracted, - Held, yes - Whether conditions for applicability of Explanation 3 to section 271(1) are cumulative and each of conditions has to be established for purpose of invoking said provision - Held, yes - As assessee had not filed return of income for relevant assessment year, notices under sections 148, 142(1) and 144(1) were issued to him - Assessee made no reply and, therefore, assessment proceeding were finalized under section 144 and a penalty under section 271(1)(c) was also imposed - Whether since on facts third condition of Explanation 3 of section 271(1)(c) namely, that no notice under section 142(1) or section 148 should have been issued within period specified under sub-section (1) of section 153 was clearly not satisfied, failure on part of assessee to furnish return of income within specified period could not be deemed to be concealment within meaning of Explanation 3 to section 271(1)(c) and, therefore, no penalty could be imposed on assessee - Held, yes [In favour of assessee] FACTS For the relevant assessment year, the assessee had not filed his return of income. Notices under sections 148, 142(1) as well as section 144(1) were issued to the assessee. However, since the assessee did not reply to said notices, the Assessing Officer finalized assessment proceedings under section 144 and also initiated penalty proceedings under section 271(1)(c). Accordingly, a show-cause notice was issued to the assessee under section 274. The assessee made no reply to said notice also. Therefore, the Assessing Officer, being of view that the assessee had accepted the assessment order and had nothing more to say in the penalty proceedings, imposed a penalty on him. The assessee filed a revision petition before the Commissioner, which was rejected on ground that the assessee had failed to comply with the show-cause notice as well as reminder issued to him. In the instant writ petition, the…

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