TMI Blog1992 (6) TMI 96X X X X Extracts X X X X X X X X Extracts X X X X ..... e, his order should be set aside and penalty should not have been levied in view of the immunity from penalty, interest etc. given by the amnesty scheme which came into existence on 26-6-1985. 2. The assessee is a registered firm dealing in soaps and detergent products. The assessment year 1983-84 is the first assessment year for which the accounting year ended on 30-9-1982. The return was filed on 27-9-1985 showing income of Rs. 1,48,386. The ITO completed the assessment on 10-9-1986 accepting the income returned subject to disallowance of Rs. 1,614 out of office and vehicle expenses on estimate basis. 3. Consequent on the assessment, the ITO initiated penalty proceedings because the return of income was due to be filed on 1-7-1983, bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h Dass Sreeram v. ITO [1988] 169 ITR 221 was not strictly applicable. He has also observed that there was no reasonable cause for the delay of 26 months. Therefore, he has continued the penalty levied by the ITO. 6. At the time of hearing, Shri G. N. Gadgil, learned counsel for the assessee was heard at great length. Though he admitted delay in the matter of filing return of income for this year, nonetheless, he stressed the point that the assessee had filed voluntarily return of income showing huge income of Rs. 1,48,386 without the service of notice under section 139(2) and 142(1). As stated earlier, the income returned was accepted in toto by making a nominal estimated addition of Rs. 1614. According, to him, the case of the assessee i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uthorities were not justified in levying penalty under section 271(1)(a) of the Income-tax Act, 1961. 7. Smt. G. V. Samant, learned departmental representative, vehemently supported the orders of the authorties for the reasons given by them. According to her, various Circulars issued by the CBDT in connection with the amnesty scheme would apply for the assessment year 1986-87 only. 8. We have duly considered the submissions of the parties, the paper compilation filed and the facts of the case. The CBDT circular No. 453 dated 4-4-1986 enumerated the various circulars, namely, circular Nos. 423, 432, 439, 440, 441 and 451 and as they invoked very good response to the offer of amnesty and numerous representations were made by the public in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the period 15-11-1985 and 31-3-1986 and paid the tax on the income disclosed and co-operated in any enquiry relating to assessment of his income. In view of these binding circulars and orders, there is no doubt that the case of the assessee also falls within the amnesty scheme because it related to the assessment year 1983-84 and the assessee has fulfilled all the conditions specified in the order dated 14-2-1986. The only question that remains to be satisfied is whether the immunity on the disclosure made by the assessee in the return filed on 27-9-1985 is applicable or not. Had the assessee filed return between 15-11-1985 and 31-3-1986 obviously, the assessee would have been eligible for immunity as per the order dated 14-2-1986. The as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i.e., 27-9-1985. The return for the assessment year 1984-85 was filed on 30-9-1985. For this year, the CIT in his revisional order under section 264 dated 6-9-1988 held that the assessee is covered by the Board's circular issued under the amnesty scheme and the assessee has paid almost the entire tax on the income declared. He held that returns were filed voluntarily and the assessee has been co-operating not only in payment of tax but also interest. It was also stated that he was satisfied that the assessees petition deserved sympathetic consideration and therefore, petition for both the assessment years were allowed, vide para 8 of the revisional order dated 6-9-1988. In view of these categorical findings given by the CIT, there is no for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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