Penalty under section 271 can be imposed only on guilty of concealment and furnishing inaccurate particulars of income

Last updated: 21 September 2012

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
Facts, in brief, as per relevant orders are that assessment in this case was completed u/s 143(3) of the Income-tax Act, 1961 (hereinafter referred to as the Act) vide order dated 09.10.2009,determining income of ``4,45,81,010/- , in pursuance to return filed on 06.11.2007 declaring income of ``4,27,91,010/-. Inter alia, an amount of ``17,90,000/- was disallowed in relation to amortization claim written off on account of membership fee paid to stock exchanges. The Assessing Officer[AO in short] also initiated penalty proceedings u/s 271(1)(c) of the Act for furnishing inaccurate particulars of income Subsequently, after considering the reply dated 21st April, 2010 in response to a showcause notice before levy of penalty, the AO imposed a penalty of ``6,02,514/- u/s 271(1)(c) of the Act @100% of the tax sought to be evaded on the income of ``17,90,000/-. Inter alia, the AO invoked explanation 1 to 271(1)(c) of the Act and relied upon the decisions in CIT Vs. Gates Foam & Rubber Co. (1973) 91 ITR 467 (Kerala); CIT Vs. Anwar Ali (1970) 76 ITR 696 (SC) and CIT Vs. Lal Chand Tirath Ram (1997) 225 ITR 675 (P&H).

Citation :
D.C. I .T. ,Circle 11(1), Room no.312,C.R. Bui lding, IP Estate, New Delhi (Appellant) V/s. Integrated Master Securi t ies Pvt . Ltd. , 303, 304, 3rd Floor, House-27, Barakhamba Road, New Delhi [PAN:AAACI 2074 F ](Respondent)