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2006 (8) TMI 162 - HC - Income TaxPenalty levied u/s 271(1)(c) - For concealment of income - HELD THAT:- On a perusal of the notice to show cause, it would clearly appear that the Assessing Officer had already decided the question that there was concealment of the income, but, before the final determination, he wanted to give an opportunity to the assessee to satisfy the authority in relation to the genuineness of the said entries. Acceptance of the revised return without much ado would not mean that the Department had not detected the concealment. In the present case, the detection of concealment led to the notice to show cause and service of show-cause notice upon the assessee, even for the sake of repetition we would say, led to filing of the revised return. Taking into consideration that the detection was much before the filing of the revised return, we cannot hold that the assessee would be entitled to any benefits of the amnesty scheme. It is also to be noted that after the submission of the revised return, on March 7, 1986, the assessee submitted the revised return and on March 18, he filed the reply to the notice to show cause and prior thereto, he had submitted his explanation on March 10, 1986. It is to be seen from the assessment order wherein the Assessing Officer has observed that prior to submission of the revised return, in letter dated March 30, 1986, the assessee explained the reasons as to why he disclosed the income. The Assessing Officer accepted the said contention and computed the income as per the revised return, but, that does not mean that the concealment was not detected. Thus, we are of the opinion that the subordinate Tribunals were not unjustified in initiating the penalty proceedings u/s 271(1)(c) of the Act and imposing the penalty. The question is answered against the interest of the assessee and in favour of the Revenue. The reference is disposed of with costs payable by the assessee to the Revenue.
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