TMI Blog2005 (8) TMI 308X X X X Extracts X X X X X X X X Extracts X X X X ..... revised returns, though penalty was levied with reference to the tax payable on the assessed income, as could be seen from the assessment order. The assessee maintained some rough books supported by some vouchers, etc. Account copies from the companies from which the assessee has procured foundation seeds have been obtained and verified by the Assessing Officer. Gross receipts admitted by the assessee, supported by the vouchers, were also verified by the Assessing Officer. There is not even a whisper doubting the correctness of the particulars contained therein. Whether the explanation offered by the assessee is bona fide or not - There is nothing on record to suggest that for the assessment year 1997-98, the assessee has earned taxable income of Rs. 2 lakhs, as assessed on the basis of revised return, as against income of Rs. 67,230 declared by the assessee in the original return. Similarly, for the other years also there is nothing on record to suggest that the income finally assessed was detected by the Department as the correct income of the assessee. Except stating that the details furnished by the assessee were cross-verified, there is no indication to the effect that the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the year 1993, and though it was raising bills on the companies for the value of the seeds as well as service charges, which exceeded Rs. 40 lakhs for each of the four years, the assessee did not file any return of income for the said assessment years. It may be noticed that the assessee admitted, during the course of survey operations, that he had not maintained any books of account, except a rough book, and also claimed that he was acting only as an agent of various companies, and thus, entitled to service charges only. It was also submitted that the service charges were his gross receipts, against which deductions, towards overheads, rent, electricity, packing, transportation, etc. need to be allowed, and net income alone is assessable to tax. The following incomes were offered for taxation subject to finalisation of his accounts, and preparation of statements- Asst. Year Income Offered 1994-95 Rs. 50,000 1995-96 Rs. 1,00,000 1996-97 Rs. 1,50,000 1997-98 Rs. 2,00,000 Assessee had also undertaken to furnish the returns of income for the above-mentioned years. 4. Consequent to the survey operations, the Assessing Officer had issued notice under section 148 of the Act in respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... done considerable business, was detected and it was also noticed that the assessee's gross receipts/sales are to the extent of Rs. 1,66,720 for the assessment year 1994-95, and he has not complied with the filing of the returns of income, even though the assessee was aware that he has taxable income. He, therefore, concluded that the action of the assessee in filing the returns declaring lesser income, and thereafter filing the revised returns declaring higher income, only after the detection of concealed income based on material found during the survey, amounted to furnishing inaccurate particulars of income. He also noticed that though the assessee contended that proper books were maintained, the fact remains that books were not maintained in proper fashion and even in the sworn statement it was remarked that he has not maintained proper books of account. In the absence of the books, it is not possible to arrive at correct income, and thus, the assessee can be said to have furnished inaccurate particulars of income in the original return, which was revised by declaring higher income. He, therefore/levied minimum penalty under section 271(1)(c) of the Act in respect of the fou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ties of the case spoke both for and against the assessee, penalty levied in that case was cancelled, whereas in the instant case, the revised returns were filed only after detection by the Department. Further, the case relied upon by the assessee pertained to the assessment year 1957-58, whereas the word 'deliberately' appearing in section 271(1)(c) was deleted subsequently. With regard to the decision of the ITAT Pune Bench, in the case of Silver Palace v. ITO [1999] 68 ITD 550, also relied upon by the assessee before him, the learned CIT(A) observed that in that case, there was an assurance from the side of the Survey Officer that no penalty would be levied, whereas in the instant case, there was nothing on record to show that any assurance was given from the side of the Assessing Officer, and at any rate, there cannot be any assurance against the provisions of law, when the facts clearly establish that the assessee has concealed taxable income. He thus, confirmed the orders passed by the Assessing Officer. 11. Further aggrieved, assessee is in appeal before the Tribunal. 12. The learned counsel appearing on behalf of the assessee strongly relied upon the decision of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce between the originally returned income and the income declared in the revised returns, though penalty was levied with reference to the tax payable on the assessed income, as could be seen from the assessment order. 15. The assessee maintained some rough books supported by some vouchers, etc. Account copies from the companies from which the assessee has procured foundation seeds have been obtained and verified by the Assessing Officer. Gross receipts admitted by the assessee, supported by the vouchers, were also verified by the Assessing Officer. There is not even a whisper doubting the correctness of the particulars contained therein. 16. In response to the penalty notice, the assessee submitted, vide explanation dated 11-4-2000, that the revised returns were filed in order to purchase peace and cooperate with the Department. This stand of the assessee was not found to be false by the Department. As could be seen from the decision of the Indore Bench of the Hon'ble Madhya Pradesh High Court in the case of CIT v. Suresh Chandra Mittal [2000] 241 ITR 124, the Explanation of the assessee that he has filed revised return to buy peace with the Department could be a bonafide expl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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