Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2017 (8) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (8) TMI 648 - HC - Income TaxPenalty under Sections 271(1)(c) - assessee surrendered additional income - unaccounted closing stock found during survey - Held that:- In the present proceedings, the Assessing Officer accepted the revised return of income filed by the respondent – Assessee declaring additional income of ₹ 1.40 crores. The Assessing Officer did not independently either in the Assessment proceedings or even in the penalty proceedings examine the contention of the respondent – Assessee that there was no excess stock as found by the Income Tax Officer during the survey proceedings. Neither any exercise was done independently to find out whether the excess stock alleged was supported by any other evidence. This particularly in the face of the respondent – Assessee asserting that the stock taking was not properly done. In-fact, at the very first instance, the respondent – Assessee did point out that no exercise was done to weigh the stock to determine the the shortage if any. In-fact, the shortage was arrived at on basis of estimate and the respondent – Assessee had itself surrendered additional income to buy peace of mind and avoid unnecessary litigation. It did not accept that actual stock was more than that recorded in its books and during the proceedings also submitted a chart showing no excess stock. In the present facts, the respondent – Assessee was consistently stating that there is no excess stock in his possession. That, it was subject to central excise control and no proceeding for clandestine removal of goods etc. were initiated against the respondent – Assessee. Further, in these facts, the respondent – Assessee, the CIT(A) and the Tribunal have held that no penalty is imposable, as the respondent – Assessee herein has consistently contended that there is no excess stock. This contention has not been examined and commented upon the Revenue before imposing of penalty. Thus, the impugned order of the Tribunal calls for no interference. - Decided in favour of assessee.
|