Case Note & Summary
The Revenue filed an appeal under Section 260-A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal dated 29.12.2016, which had set aside the penalty imposed on the respondent-assessee, M/s Deccan Mining Syndicate Pvt. Ltd., for the assessment years 2007-08 to 2010-11. The Assessing Authority had imposed penalty under Section 271(1)(c) of the Act for alleged concealment of income or furnishing inaccurate particulars. The Tribunal, however, deleted the penalty, holding that there was no concealment or furnishing of inaccurate particulars by the assessee. The Revenue challenged this deletion, raising substantial questions of law. The High Court, after hearing the counsel for the Revenue, found that the Tribunal's decision was based on findings of fact that the assessee had not concealed any income or furnished inaccurate particulars. The court noted that mere disallowance of a claim does not automatically attract penalty under Section 271(1)(c); there must be conscious concealment or furnishing of inaccurate particulars. Since the Tribunal's findings were factual and not perverse, no substantial question of law arose. Consequently, the appeal was dismissed.
Headnote
A) Income Tax - Penalty under Section 271(1)(c) - Concealment of Income - The issue was whether penalty can be imposed for mere disallowance of claim without finding of concealment or furnishing inaccurate particulars - The court held that penalty under Section 271(1)(c) requires conscious concealment or furnishing of inaccurate particulars, and mere disallowance of claim does not attract penalty - The Tribunal's finding that there was no concealment was a finding of fact, and no substantial question of law arose (Paras 1-5).
Issue of Consideration
Whether the Income Tax Appellate Tribunal was justified in deleting the penalty imposed under Section 271(1)(c) of the Income Tax Act, 1961, and whether any substantial question of law arises from the Tribunal's order.
Final Decision
The High Court dismissed the appeal, holding that no substantial question of law arises from the Tribunal's order, which was based on findings of fact.
Law Points
- Penalty under Section 271(1)(c) of Income Tax Act
- 1961 requires conscious concealment or furnishing of inaccurate particulars
- mere disallowance of claim does not attract penalty
- substantial question of law must arise from Tribunal's findings of fact
