TMI Blog2010 (12) TMI 117X X X X Extracts X X X X X X X X Extracts X X X X ..... Respondent Represented by:Ms. Urvashi Dhugga, Standing Counsel ADARSH KUMAR GOEL, J. 1. This appeal has been preferred by the assessee under Section 260-A of the Income Tax Act, 1961 (for short, "the Act") against the order of the Income Tax Appellate Tribunal, Chandigarh dated 21.7.2006, Annexure A-6 and was admitted for consideration of following questions of law:- "i) Whether in the facts and circumstances of the case, the ITAT was justified in sustaining the penalty of Rs.1,70,753/- under Section 271(1) (c), even though the assessing Officer had not recorded any satisfaction about concealment of income in the assessment order or in the notice under Section 274 of the Income Tax Act? ii) Whether in the facts and circumsta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t there is a wear and tear and loss of weight, also in the process the bardana is cut and torn. Thus the price of bardana is lesser than the cost price and the value of closing stock has been taken at realisable value resulted to a loss under the account. The reasons given by the counsel of the assessee are untenable and have no force as bardana is sold immediately after with the filling of rice and it has a long life more than a year. Thus, the loss of Rs.1,81,949/- claimed by the assessee in the bardana account and debited to P L Account is disallowed. 6. Again the scrutiny of very bardana account revealed that the assessee has claimed shortage of 15475 bags. Vide this office letter dated 7.3.94 the assessee was asked to give reasons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. Out of opening stock of 32900 bags, 28000 bags had been purchased after December, 1990. The other purchases of 56709 bags were in the year under consideration. As against this, there is sale of 32874 bags and shortage of 15475 bags has been claimed. In other words, almost 1/3 rd of the remaining bags after taking into account sales has been claimed as shortage. This claim is not supported either by the past history of the case or any other exceptional circumstance. Therefore, the conclusion of the AO that there was no shortage and there was suppression of sales of bardana is held to be justified......" 5. The Tribunal also upheld the above finding as follows:- "15). ........The addition has made on account of suppressed sales of barda ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the plea of theassessee is not allowed for a particular deduction, is not always enough to infer that the assessee had furnished inaccurate particulars or concealed the particulars, but where addition is referable to inaccuracy in particulars of income furnished or concealment thereof, the penalty may be called for. The Assessing Officer has to decide the questions on its satisfaction based on reasons.11. In the present case, there is concurrent finding of fact recorded by the CIT(A) and the Tribunal that the assesseeconcealed the particulars of income. The said finding has attained finality. If this is so, the reason for addition being furnishing of inaccurate particulars, the levy of penalty could not be held to be erroneous. The jud ..... X X X X Extracts X X X X X X X X Extracts X X X X
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