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| The Tax Publishers2020 TaxPub(DT) 3203 (Bom-HC) : (2020) 316 CTR 0280 : (2020) 274 TAXMAN 0110 INCOME TAX ACT, 1961
Section 271(1)(c)
Levy of penalty under section 271(1)(c) on the ground of concealment of particulars of income was not justified when proceedings were initiated on the ground of furnishing of inaccurate particulars of income.
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Penalty under section 271(1)(c) - Concealment or furnishing of inaccurate particulars - Initiation of penalty proceedings on one ground and levy of penalty on the other -
AO made certain disallowance and accordingly AO initiated proceedings under section 271(1)(c) on the ground of furnishing of inaccurate particulars of income whereas levied penalty on account of concealment of income. Held: Two key expressions in section 271(1)(c) are 'concealment of particulars of income' and 'furnishing of inaccurate particulars of such income'. These two expressions carry different connotations. Accordingly, levy of penalty on the ground of concealment of particulars of income was not justified when proceedings were initiated on the ground of furnishing inaccurate particulars of income. Further, assesse had never suppressed any material fact from AO. It is another matter that claim based on such facts was found to be inadmissible. This was not the same thing as furnishing of inaccurate particulars of income as contemplated under section 271(1)(c). Accordingly, penalty was deleted.
REFERRED :
FAVOUR : In assessee's favour
A.Y. : 2005-06
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