TMI Blog2013 (7) TMI 200X X X X Extracts X X X X X X X X Extracts X X X X ..... es not absolve the assessee on the aspect of concealment attracting the penalty provisions. The assessee admitted that the amount, which was claimed to be the expenditure towards 'service charges' were diverted for investment in various properties and gifting and advancing monies etc. They were reflected in the accounts of the assessee for the assessment years 2003-04 and 2004-05 - attempt to fabricate the evidence to make an illegal gain, by suppression of profits is clearly made out attracting penalty provisions. The view of the Income Tax Appellate Tribunal ignoring the law declared by this Court and Apex Court in the decision in the case of Union of India and others Vs. Dharamendra Textile Processors and others [2008 (9) TMI 52 - SUP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee had debited Rs.32,67,730/- towards service charges. The expenditure was incurred through vouchers, the maintenance of which, raised doubts about their genuineness. Thus, a survey under Section 133A of the Income Tax Act, 1961 (hereinafter called as the "Act") was conducted and statement was recorded through assessee. 5. A reading of the same shows that the assessee was in the habit of maintaining two sets of vouchers. When a specific question was put to assessee, he stated that on some of the cash vouchers, which were for more than Rs.20,000/- each, new vouchers were prepared in newly printed voucher forms. Thus, there were 43 vouchers for a total value of Rs.21,01,500/- with a cash value of each of the vouchers at Rs.20,000/-. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n statement was recorded from the assessee, thereafterwards, he filed a letter on 16th October 2006, wherein, he came forward with a disclosure of additional income of Rs.32,67,730/- claiming towards service charges and commission payments for different assessment years viz., 2003-04, 2004-05 and 2005-06. The Commissioner of Income Tax further found that the assessee had furnished details of how this income was deployed in various assets viz., promissory notes, investments made in land, gifts made to relatives and unsecured loans disbursed to friends etc. The assessee himself produced specific details on this aspect. Based on the above admitted fact, the Commissioner of Income Tax found that the amounts claimed towards service charges was i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in expenditure per se would not lead to an inference to concealment. Referring to the decision in the case of Union of India and others Vs. Dharamendra Textile Processors and others reported in 306 ITR 277 as well as the decision in the case of Sir Shadilal Sugar and General Mills and another Vs CIT reported in (1987) 168 ITR 705, the Income Tax Appellate Tribunal held that a mere concealment or furnishing of inaccurate particulars by itself would not justify the levy of penalty. 10. Thus, referring to the decisions of this Court in the case of CIT Vs Cafco Syndicate Shipping Co. reported in (2007) 294 ITR 134 , the Income Tax Appellate Tribunal further pointed out that when the assessee had offered the amount for assessment, on the mere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the learned Standing counsel for the Revenue. As already narrated in the preceding paragraphs, it is evident that 43 vouchers created by the assessee were for a sum of Rs.21,01,500/-, whereas, the amount debited in the profit and loss account was to the extent of Rs.32,67,730/-, therefore, the entire claim made towards service charges had been proved to be false or bogus because those details were not even furnished in the new vouchers. It is no doubt true that confronted by above facts the assessee offered the said amount for assessment and paid tax thereon. This however does not absolve the assessee on the aspect of concealment attracting the penalty provisions. The assessee admitted that the amount, which was claimed to be the expendit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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