TMI Blog1997 (4) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome for the year under appeal was filed by his son Shri Jayantilal V. Patel as new Karta of the assessee-HUF. The original assessment was completed on 21st March, 1984. Later on, during the course of sales-tax assessment, the STO while making the assessment for S.Y. 2038 held that the goods worth Rs. 2,05,951 were not shown in the closing stock. In pursuance to this information, a survey was conducted under s. 133A of the Act on 5th Feb., 1988 by the ITO and statement of the present Karta of the assessee-HUF was recorded. Subsequently, action under s. 147 of the IT Act was taken and a revised return was filed voluntarily disclosing the amount of Rs. 2,11,433. According to the assessee the voluntary disclosure was made on a specific unders ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... take note of such stock. He accordingly held that no penalty was leviable in view of the ratio laid down by the Hon'ble Madras High Court in the case of Radha Rukmani Ammal vs. CIT (1957) 31 ITR 704 (Mad). 4. Shri V.K. Mathur, the learned Departmental Representative strongly supported the order of the AO. He submitted that the assessee failed to disclose the value of stock worth Rs. 2,11,430 and accordingly the assessee was liable to be penalised under s. 271(1)(c). He further submitted that the penalty levied at the minimum rate was fair and reasonable and accordingly the order of the CIT(A) should be reversed. 4.1 Shri N.R. Divatia, the learned counsel for the assessee strongly supported the order of the CIT(A). He submitted that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to inclusion of the same for taxation and paid the tax. He, therefore, submitted that no penalty is leviable in view of the judgment of the Madras High Court in the case of Radha Rukmani Ammal vs. CIT. 5. We have considered the rival submissions and perused the facts on record. The penalty proceedings are penal in nature and hence elementary principles of criminal law will apply. It is a quasi-criminal proceeding. There must be conscious concealment. The provisions should be construed strictly. The penalty proceedings are distinct and different from assessment proceedings and the findings in the assessment proceedings are not conclusive but are relevant. The entire materials available should be considered afresh by the authorities bef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mall and tiny items preserved in the cupboard. He was under a bona fide belief that the books of accounts as prepared by the then Karta were correct and filed return on the basis of such books of accounts. We would, therefore, agree with the learned counsel for the assessee that the ratio of the decision of the Madras High Court in the case of Radha Rukmani Ammal vs. CIT will apply and the very fact that as soon as the assessee came to know about such omission, he agreed to surrender the same for taxation, shows his bona fides. Further the sales of these goods were declared in the asst. yrs. 1984-85 and 1985-86, the returns for which were filed before the sales tax assessment and the survey under s. 133A. If there would have been deliber ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
