Case Law Details
ITAT New Delhi held In the case of Tristar Intech Pvt. Ltd. vs. ACIT that for levy of penalty u/s 271(1)(c) there should be concealment of income on the part of assessee. In the given case AO has initiated penalty proceeding u/s 271(1)(c) on the basis that the assessee has concealed the particulars of income but penalty ultimately levied on the assessee for furnishing inaccurate particulars by the Explanation 1 to Section 271(1)(c). Explanation 1 is a deeming provision and is applicable only when an amount is added or disallowed in computation of total income which is deemed to represent the income in respect of which particulars have been concealed. Explanation 1 cannot be applied in a case where the assessee furnishes inaccurate particulars of income but applicable to a case of “Concealment of Income”.
Facts of the Case
The assessee company is engaged in the business of contractors of waterproofing projects, construction related to infrastructure projects, dismantling of existing buildings etc. The assessee filed its return of income on 30.11.2006 declaring total income of Rs. 10,28,830/-. The same was processed u/s 143(1). The assessing office concluded the assessment on 30.12.2008, by making the total additions of Rs. 34,13,249 on the ground of excess depreciation on plant & machinery, non capitalization of expenses on account of custom duty & shipping expenses, unpaid statutory liability u/s 43B and late deposit of PF & ESI. There was no appeal against this order by the assessee. Hence, the AO initiated the penalty proceedings u/s. 271(1) (c) and finalized the penalty proceedings by stating that the assessee has furnished inaccurate particulars of income.
Contention of the Assessee
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