*Concealment of income penalty us 271(1)(c)*
Where return was filed in response to notice issued us 148 and Return was accepted by AO AND Reassessment Order us 147 was passed without any Quantum Addition .
BACK GROUND:. For imposition of penalty us 271(1)(c) AO has to *satisfy* himself that assessee had elither Concealed Particulars of Income or Furnishes in accurate particulars of Income and also *note* his satisfication in the Assessment Order before imposition of penalty us 271(1)(c).
SC in the case of " CIT VS. RELIANCE PETRO PRODUCTS " held that RETURN OF INCOME is the *only document* where assessee can furnish in accrate particulars of Income.
With this back ground please consider the following issue.
WHETHER WHERE RETURN WAS FILED IN RESPONSE TO NOTICE ISSUED US 148 WAS ACCEPTED BY AO CAN AO PROCEED TO IMPOSE PENALTY US 271(1)(c).
ANSWER: For imposition of penalty us 271(1)(c) AO has to satsify himself that Assessee had concealed its particulars of Income or furnished inaccurate particulars of income and AO has to record his satsfication in the Assessment Order. As held by SC in the case of CIT VS. RELIANCE PETRO PRODUCTS Return of Income is the only document where Asessee can furnish in accurate particulars of income.
When particulars given in the Return of Income is found to be inaccurate than only penalty liability arises.
When an Income which is brought to tax declared in a return of income, there can be no question of treating the assesee as having either concealed particulars of income or furnished in accurate particulars of income ; hence Return Filed in response to Notice issued us 148 which is ultimately accepted by AO -- NO CONCEALMENT PENALTY SHALL BE IMPOSED US 271(1)(c)
This is view is supported by following case laws.
MEETA GUTGUTIA VS. ACIT SUSHIL CHAND GUPTA VS. ACIT. MUNINAGA REDDY VS. ACIT.
Summary: Return filed in response to notice issued us 148 accepted by AO and order passed without any addition No Concealment Penalty us 271(1)(c) |