INCOME TAX ACT, 1961

Section 271(1)(c)

Penalty under section 271(1)(c) - Concealment or furnishing of inaccurate particulars - No technical defect -

AO initiated penalty proceedings under section 271(1)(c) on the ground that “by putting forth inadmissible claim of deduction under section 10B, assessee had sought to lower its incidence of taxation and had thereby, not only furnished inaccurate particulars of its income but has also concealed its income within the meaning of section 271(1)(c) .In penalty order AO levied penalty on the ground that “by making an improper claim, assessee had wilfully reduced its incidence of taxation and thereby concealed its income as well as furnished inaccurate particulars of its income”. Assessee callanged this on the ground that notice under section 274 read with section 271(1)(c) issued by AO without indicating any specific reason/charge was defective. Held: AO has to satisfy whether penalty proceedings be initiated or not during the course of assessment proceedings and he is not required to record his satisfaction in a particular manner or reduce it into writing.In the instant case,AO initiated penalty proceedings not only for furnishing inaccurate particulars of income but also for having concealed income and subsequently levied penalty having considered the above two ingredients. Accordingly,there was no technical defect in initiating penalty proceedings under section 271(1)(c) .

Followed: MAK Data Pvt. Ltd. v. CIT 358 ITR 593 (SC)

REFERRED :

FAVOUR : Against the assesse

A.Y. :

INCOME TAX ACT, 1961

Section 271(1)(c)

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