1980 (5) TMI 63

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..... n the stock shown in the bank and the books of the assessee the second is some sale of iron casting scrap. The addition was confirmed by the AAC. At the Tribunal stage the matter was decided ex-parte because the assessee did not appear. During the assessment proceedings the ITO issued a notice under s. 271(1)(e) after having obtained the explanation of the assessee, he levied a penalty of Rs. 12,0 .....

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..... bmitted that the fact that the addition had been sustained by the Tribunal constituted the martial for establishing the concealment. It was, therefore, submitted that the penalty was exigible. It was further submitted that keeping in view the returned income and assessed income the Expln. to s. 271(1)(c) was applicable. 4. After hearing both the parties I am of the view that the penalty is not ex .....

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..... CIT vs. Khday Eswarsa & Sons 1972 CTR (SC) 295 : (1972) 83 ITR 369 (SC). 5. As regards the contention of the Deptl. Representative that the Explanation to s. 271(1)(c) is applicable, I cannot accept that contention also. The ITO while issuing the notice under s. 271(1)(c) did not mention that the case is covered by the Explanation too. In order that the penalty be justified in law, charges must b .....

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