TMI Blog1998 (7) TMI 126X X X X Extracts X X X X X X X X Extracts X X X X ..... ment determining net loss at Rs. 10,00,000 vide order, dt. 31st Jan., 1992 under s. 143(3) of the Act. He initiated penalty proceedings under s. 271(1)(c). 3. In response to show-cause notice, written reply, dt. 20th July, 1992 was filed stating therein, inter alia, that the assessee has not concealed any particulars of income, only some minor disallowances have been made to the returned loss, in loss case no concealment initiated. The explanation was not acceptable to the AO, who, for the reasons given in the assessment order, observed that loss amounting to Rs. 8,58,072 was disallowed for want of details/evidence filed by the assessee. Invoking the provisions contained in Expln. 4 below s. 271(1)(c), he imposed the impugned penalty. Agg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om) 12. 7. It was further contended that in the absence of invoking Expln. to s. 271(1)(c), burden would remain on the Revenue to bring the case within mischief of main provisions of s. 271(1)(c) as held in CIT vs. Dharamchand L. Shah (1993) 113 CTR (Bom) 214 : (1993) 204 ITR 462 (Bom). It was submitted that the assessee tried to give all the possible information as called for but despite best efforts some of the information could not be filed, as the factory was practically closed and there was none to look after the taxation matters. In support of the above, copies of correspondence with Rajasthan State Electricity Board were filed to emphasise that at the relevant time, there was none to attend even such important matters, as the insta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o inkling in the assessment order that reasons for increase under the head other liabilities and loan from others were asked from the assessee, as such increase was noted by the AO from balance sheet available on the records, which settlement claims were not allowable in nature have not been specified in the assessment order. It would further be seen from the assessment order that the assessee had explained that details could be prepared partly only because the company is closed for more than a year and no proper person is there to look after the affairs of the company. Nonetheless books of account in whatever form they were had been produced before the AO. During the course of penalty proceedings, the assessee explained the reasons for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the concealed income is more than the assessed income, it means the tax on the amount of concealed income, (b) where the case falls under Expln. 3, it means the tax on the assessed income, and (c) in other cases, it means the difference between the tax on the total income assessed and the tax on the total income minus concealed income. It would be apparent from the above that the basis of calculation is the tax on the amount of concealed income and/or tax on the total income assessed. In the instant case, there is neither total positive income nor there is tax on the amount of any concealed income. Moreover, in CIT vs. Ganesh Prasad Badri Prasad Co. (1997) 140 CTR (MP) 548 : (1997) 231 ITR 951 (MP), their Lordships of Madhya Pradesh Hig ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
