November 2008
Penalty : Concealment of income : S. 271(1)(c) : No penalty proceeding initiated in the preceding year on similar issue : Finding by Tribunal that a case of difference of opinion and not concealment of income : Proper.
By K. B. Bhujle, Advocate
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14 Penalty : Concealment of income : S.
271(1)(c) of Income-tax Act, 1961 : A.Y. 1983-84 : No penalty proceeding
initiated in the preceding year on similar issue : Finding by Tribunal that a
case of difference of opinion and not concealment of income : Proper.
[CIT v. Sood Harvester, 304 ITR 279 (P&H)]
For the A.Y. 1983-84, the Assessing Officer imposed penalty
u/s.271(1)(c) of the Income-tax Act, 1961 for concealment of income. The
Tribunal found that in respect of the addition made on the same issue for the
A.Y. 1982-83, the AO had not initiated penalty proceedings. The Tribunal
recorded that the assessee had disclosed complete facts before the AO along with
the return, as well as during the course of assessment proceedings and held that
it was a case of difference of opinion and not concealment of income. The
Tribunal also held that there was no reason for the Revenue to take a different
view for the A.Y. 1983-84 on the same set of facts and without assigning
reasons.
The Punjab and Haryana High Court dismissed the appeal filed
by the Revenue and held as under :
“(i) The Tribunal had followed the correct approach by
concluding that it was a case of difference of opinion and not concealment of
income on the reasoning that in the preceding year the facts were almost the
same and still no penalty proceedings u/s.271(1)(c) was initiated.
(ii) The Revenue had to maintain consistency for the
purpose of finality in all litigation and a decision on the same question
would not be re-opened unless some new facts were found with material
difference in the subsequent years.”
