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2014 (6) TMI 947 - HC - Income TaxPenalty under Section 271(1)(c) - difference in valuation of stock and expenses on staff and coolie - Held that:- As after the returns were filed, in the course of survey proceedings, it was found that there was difference in valuation of stock and expenses on staff and coolie. The assessee without a murmur filed second revised return and offered it for tax and paid tax and interest promptly. In the course of assessment proceedings, the assessee tried to justify its returns and had produced before the authorities all its books of account, invoices, check post certificates and delivery notes. When the Assessing Authority called upon the assessee to secure the confirmation letters and also to produce the creditors before him, the assessee was successful in getting confirmation letters from everyone, but could not produce some of the creditors. Only in respect of those creditors whose presence it could not secure which was six in number, the assessee agreed to write off the said persons and offered it for tax. Hence, the assessee was called upon to file second revised returns which it promptly filed and paid the tax with interest. It is not a case where the assessee did not offer any explanation nor the explanation offered by it was found to be false or not found to- be bona fide. Partially it was successful in proving its defense. Therefore, it is a case where, the assessee was not successful in establishing his defense. Therefore, there was no intention either to suppress information or to file any incorrect statement. At this juncture it is pertinent to note that in the notice issued to the assessee, the department has not made it clear what is the accusation against the assessee and it was full of blanks. In those circumstances, the Tribunal on proper consideration of the entire material on record and after taking note of the law on the point as decided by the various courts, rightly held that there is no suppression of material facts and was justified in setting aside the order passed by the First Appellate Authority as well as the Assessing Authority. - Decided in favour of the assessee
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