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D. Mensrea is not essential element for imposing penalty for breach of civil obligations or liabilities".

Mr. Shome relied upon a decision reported in 306 ITR 277 (Union of India & Ors. Vs. Dharmendra Textiles Processors & Ors.) where a Three Judge Bench of Hon'ble Supreme Court has held as follows :

"The Explanation appended to Section 271(1)(c) of the Income Tax Act, 1961, indicate the element of strict liability on the assessee for concealment or for giving inaccurate particulars while filing the return. The object behind the enactment of Section 271(1)(c) read with the Explanation indicates that the section has been enacted to provide for a remedy for loss of revenue. The penalty under that provision is a civil liability. Wilful concealment is not an essential ingredient for attracting civil liability as is the case in the matter of prosecution under Section 276C".