Law:

Section:

Section 271(1)(c) of the Income-tax Act, 1961 - Penalty - For concealment of income - Assessment year 1971-72 - For relevant assessment year, ITO rejected assessee's claim for deduction in respect of sales tax and imposed penalty under section 271(1)(c) on ground that assessee was guilty of concealment inasmuch as it had claimed aforesaid amount as deduction - On appeal before AAC, assessee contended that though deduction in question should have been claimed in assessment year 1970-71, due to inadvertence, it was not so claimed and was claimed for first time in relevant assessment year - AAC accepted assessee's case and set aside penalty order - On revenue's appeal, Tribunal, however, confirmed penalty order - Whether since Tribunal had not recorded a finding to effect that expenditure claimed by assessee was not incurred at all or that it was claimed in earlier years or that assessee deliberately made a false claim for deduction in relevant assessment year, it was not justified in holding that assessee was liable to pay penalty under section 271(1)(c) - Held, yes FACTS For the relevant assessment year the ITO rejected the claim of the assessee for deduction in respect of sales tax. Thereafter, he initiated penalty proceedings against the assessee and imposed penalty under section 271(1)(c) on the ground that the assessee was guilty of concealment inasmuch as it had claimed the aforesaid amount as deduction. On appeal before the AAC, the assessee contended that though the deduction in question should have been claimed in the assessment year 1970-71, due to inadvertence, it was not so claimed and was claimed for the first time in the assessment year 1971-72. It was also contended that there was no conscious concealment of income. The AAC held that as the deduction in question had not been claimed in the assessment year 1970-71, and as the assessee had claimed it for the first time in the assessment year 1971-72, it could not be held that the assessee was liable to pay penalty for concealment of income. On revenue's appeal, the Tribunal however, held that the assessee was liable to pay penalty under section 271(1)(c). On reference under section 256(2): HELD…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492