Penalty u/s 271(1)(c) of the Income Tax Act, 1961 has its prime objective of providing a deterrent against the reoccurance of default by assessee. Penalty u/s 271(1)(c) can be levied in case of a)concealment of particulars by assessee in his return of income b)furnishing of inaccurate particulars pertaining to such return of income. It is a civil liability, and can be levied during the course of assessment proceedings either by AO, or CIT(A), or CIT.Reference can be made in this regard to citations of CIT v/s Indian Metal and Ferroy Alloys Limited (1995) 211 ITR 35 (Orissa High Court) regarding meaning of expressions concealment and furnishing in accurate particulars of return of income, and A.V.Thomas & Co (India) Limited vs CIT (1966) 59 ITR 499 (Madras High Court)
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