9911796707
TMI Blog1976 (7) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... bove conclusion are given in para 1 of the ITO's order, which is extracted below:-- " The assessee who carries on trade in manufacture and sale of art silk sarees, in response to notice u/s. 148, filed his return admitting an income of Rs. 10,053 as originally admitted and assessed. The reassessment was completed on 29th November, 1971 adding an amount of Rs. 18,273 (Later reduced to Rs. 16,817 on appeal) to the income returned. This amount represents the balance due to various weavers from whom the assessee had purchased sarees on credit. On verification the assessee stated at the time of reassessment that these sarees were purchased from one Shri S.P. Subbaraya Pandaram, a street hawker selling sarees and on his instruction these were cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at when the Tribunal had accepted the finding that there has not been credit purchases and they represented cash purchases for which there was a deficit cash balance, the department had discharged its onus and in view of the explanation to s.271(1)(c) it was for the assessee to establish that there was no failure on its part to return the correct income. 5. We have considered the rival submissions and we have also gone through the order of the Tribunal where the addition has been sustained. We have also gone through the recorded statement of Shri S.P. Subbaraya Pandaram, whose evidence has figured mainly in the assessment proceedings as well as thereafter. On going through the statement of Shri S.P. Pandaram,we find that he has stated that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for any gross or wilful neglect or fraud on his part. We therefore, agree with the submission of the assessee's representative that so far as the addition is concerned, there may be good justification but so far as the penalty proceeding is concerned, lack of a clear and definite finding, as in this case, that there has been concealment of income is a factor that has to be taken note of the charging the assessment with the suit of concealment or filing of inaccurate particulars. That being so, we are satisfied that no contumacious conduct or concealment of income on the part of the assessee is noticeable and, therefore, we feel that no penalty is justified. The penalty is accordingly cancelled.
6. In the result, the appeal is allowed. X X X X Extracts X X X X X X X X Extracts X X X X
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