Penalty under section 271(1)(c) is civil liability.


Last updated: 07 February 2008

Court :
SC

Brief :
There is a conflict of opinions between the judgments of the Division Bench of the Supreme Court in the case of Dilip N. Shroff (supra) on one hand and on the other in the case of Shriram Mutual Fund (supra). Secondly, the object behind enactment of section 271(1)(c), read with the Explanations indicates that the said section has been enacted to provide for a remedy for loss of revenue. The penalty under the said section is a civil liability. Wilful concealment is not an essential ingredient for attracting the civil liability as is the case in the matter of prosecution under section 276C. While considering an appeal against an order made under section 271(1)(c) what is required to be examined is the record which the officer imposing the penalty had before him and if that record can sustain the finding there had been concealment, that would be sufficient to sustain the penalty. Keeping in mind these two circumstances, it is to be opined that the judgment of the Division Bench in the case of Dilip N. Shroff (supra) needs consideration. The Explanations added to section 271(1)(c) in that entirety also indicate the element of strict liability on the assessee for concealment or for giving inaccurate particulars while filing returns. The judgment in Dilip N. Shroff’s case (supra) has also not considered the provisions of section 276C. Therefore, the judgment in Dilip N. Shroff (supra) needed consideration by the larger Bench particularly when it had ramifications not only regarding provisions of the 1944 Act but also with regard to the provisions of sections 3A and 11AC of the 1944 Act and rule 96ZQ(5) of the Central Excise Rules.

Citation :
Union of India v. Dharamendra Textile Processors CIVIL APPEAL NOS. 3397, 4094, 10289 TO 10303 OF 2003, 4096 OF 2004, 3388, 5277 OF 2006 AND 2793 OF 2007 DECIDED ON 19-7- 2007.

You have reached daily limit of 2 Free Judgements. To view this or other Judgements please subscribe to CCI PRO :

GST Plus

Stay updated! Stay ads free

Browse CAclubindia ads free.
Latest updates on WA.
Daily E-Newsletter and much more.

CCI PRO annual subscription :

Original Price : INR 2999/-

Offer Price : INR 1999/-

Duration : 1 year
(Prices Inclusive of GST)


Know More

Note: If you are a PRO member already, please click here to login (for ad free experience)
 

CCI Pro

Comments

CAclubindia's WhatsApp Groups Link


CCI Pro
Follow us