Law: Income Tax Act, 1961

Section: 271,271(1)(c)

(a) Income-tax---Penalty---Concealment of income---Furnishing of inaccurate particulars of income---Basis for issue of notice and for imposition of penalty should be same---Notice issued on the ground that income had been concealed--­Tribunal considering evidence and upholding levy of penalty---Additions made by Tribunal in quantum proceedings not made basis for levy of penalty---Levy of penalty for assessment year 1970-71 was valid---Indian Income Tax Act, 1961, S.271(1)(c). Penalty proceedings can be initiated under section .271(1) of the Income Tax Act, 1961, only if the Income-tax Officer or the Appellate Assistant Commissioner, is satisfied in the course of any proceedings under the Act that there has been concealment of income. If he is satisfied as per clause (c) of section 271(1) that any person has concealed the particulars of his income or has furnished inaccurate particulars of such income, he may direct that such person shall pay by way of penalty the sum mentioned in sub-clause (iii) of clause (c). The expression used in clause (c) is "has concealed the particulars of his income" or "furnished inaccurate particulars of such income". Therefore, both in cases of concealment and inaccuracy, the phrase "particulars of income" is used. It will be noted that as regards concealment the expression in clause (c) is "has concealed the particulars of his income" and not "has concealed his income". It is obvious that the penal provisions would operate when there is a failure of duty, to disclose fully and truly particulars of income. There cannot be a straitjacket formula for detection of these defaults of concealment or of furnishing inaccurate particulars of income. Concealment of particulars of income and inaccurate particulars of income may at times overlap, as for example, when half of the income under a particular head is not at all disclosed, that would be concealed to that extent while the remaining half which is in fact disclosed would, not being his complete disclosure, amount to inaccurate particulars of income as regards that constituent item of the return. The basis of the issuance of notice should remain the same while imposing penalty. If the…

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