COMMISSIONER OF INCOME TAX Vs. S.GOWRI
LAWS(MAD)-2019-2-268
HIGH COURT OF MADRAS
Decided on February 21,2019

COMMISSIONER OF INCOME TAX Appellant
VERSUS
S.Gowri Respondents

JUDGEMENT

VINEET KOTHARI,J. - (1.) Revenue has filed these Appeals under Section 260A of the 2 / 13 Income Tax Act, in short, ''Act'', aggrieved by the common order passed by the learned Income Tax Appellate Tribunal, for brevity, ''Tribunal'', dated 12.12.2013, setting aside the penalty under Section 271 (1) (c) of the Act against the Assessee, namely, Smt.S.Gowri, wife of late Sri S.Shanmugam, who expired on 23.01.2011.
(2.) The following Substantial Question of Law arises for consideration of this Court : "Whether in the facts and circumstances of the case and in law, the Appellate Tribunal is correct in interpreting Section 159 of the Income Tax Act to the effect that penalty under Section 271 (1) (c) cannot be levied on the legal representative, ignoring the specific provision contained in Clause (2) (b) of Section 159 of the Act ?
(3.) A search was conducted at the residence of Sri S.Shanmugam on 13.02.2009 and the learned Tribunal, by the order impugned, dated 12.12.2013, upheld the imposition of penalty against the said assessee, with the following observations : "Even otherwise, the assessee had not declared her undisclosed income at the first instance (supra). It was only after 'search' and investigation that income of Rs.29,25,48,420/- stood declared. In these 3 / 13circumstances, we refer to the case law of jurisdictional High Court as well as that of Hon'ble Karnataka High Court (supra) wherein it has been held that if an income is unearthed in the course of investigation or enquiry conducted in the course of assessment, act of an assessee amounts to concealment and furnishing of inaccurate particulars of income. Therefore, the corresponding findings in the order of the CIT(A) go against the settled law u/s 271 (1) (c) as well as 271 (1) (c) explanation 5A of the Act and not liable to be affirmed. Hence, the impugned penalty imposed by the Assessing Officer stands revived."? ;


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