TMI Blog1997 (1) TMI 137X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. We have heard the rival submissions in the light of material placed before us and the precedents relied upon. The assessment order for the relevant assessment years were completed. Search action under s. 132 of the Act was conducted at the premises of the assessee, in the course of which some material was found which reflected unrecorded investment/expenditure. The material was stated to be rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome of the assessee and it was reflected in the return because of the lurking fear of detection. 4. We find that the assessee agreed to surrender the income by incorporating the additional income in the returns which got subsequently regularised under s. 148. The apex Court in the case of Sir Shadilal Sugar General Mills Ltd. Anr. vs. CIT (1987) 64 CTR (SC) 199 : (1987) 168 ITR 705 (SC), has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... law. We find that the Department did not sufficiently prove the factum of concealment by independent enquiry. Addition is based solely on the basis of admission made by the assessee. It was also alleged by Shri Ranka, the learned counsel for the assessee that no incriminating material having nexus with the years under consideration was ever found in the custody of the assessee at the time of sear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of income or a portion thereof from the knowledge of the IT authorities. It is implict in the word "concealed" that there has been a deliberate act on the part of the assessee. The meaning of the word "concealment" as found in Shorter Oxford English Dictionary, 3rd Edn., Vol. 1 is as follows: "In law, the intentional suppression of truth or fact known, to the injury or prejudice of another" 6. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g regard to the facts of the present case, we are of the opinion that the issue in question stands covered by the decision of the apex Court rendered in the case of Sir Shadilal Sugar General Mills Ltd. vs. CIT. Respectfully following the precedent, we decide the issue in favour the assessee and against the Revenue. Accordingly, we direct the AO to delete the penalties imposed under s. 271(1)(c) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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