TMI Blog2011 (4) TMI 196X X X X Extracts X X X X X X X X Extracts X X X X ..... .e. one in the return filed for the assessment year 1998-99 and second time in the return filed for the assessment year 1999-2000 - The Tribunal while upholding the penalty under Section 271(1)(c) of the Act had recorded that the Explanation furnished by the assessee was not bonafide and the assessee was unable to substantiate its version. The explanation of assessee that the amount was claimed in assessment year 1998-99 on legal advice - There is no evidence to that effect on record - It was also explained that claim in this year was merely a clerical mistake - It has been held that this explanation is not bonafide because the assessee could not have forgotten that this very amount was claimed in the return for assessment year 1998-99 le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or disposal of the appeal are that the assessee is manufacturer of auto parts and supplier to Maruti Udyog Ltd. It filed its return of income for the assessment year 1998-99 on 29.10.1998 declaring an income of Rs.1,46,140/-. The said return was revised on 21.10.1999 declaring loss of Rs.8,53,860/- on account of receipt of debit notes amounting to Rs.10,00,000/- from the Maruti Udyog Limited. The assessment order was passed on 27.3.2001 accepting the loss of Rs.6,35,767/- after allowing the claim of Rs.10,00,000/-. The assessee for the year 1999-2000 filed return of income on 16.12.1999 declaring net loss of Rs.5,94,541/-. Here, the assessee had again claimed loss amounting to Rs.10,00,000/- on account of debit note received from Maruti Udy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t and restored that of the Assessing Officer dated 27.3.2001 allowing deduction of Rs.10,00,000/- from income relating to the assessment year 1998-99. The appeal of the revenue against the order deleting the addition was dismissed as the order under Section 263 of the Act was set aside and it was held that the consequential proceedings thereto have become infructuous. However, the order imposing penalty under Section 271(1) (c) of the Act was upheld by the Tribunal. Hence, the present appeal by the assessee. 3. We have heard learned counsel for the parties. 4. The point in issue is whether the penalty imposed under Section 271(1)(c) of the Act by the Assessing Officer and sustained by the Tribunal was justified. 5. It is not i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , then, the amount added or disallowed in computing the total income of such person as a result thereof shall, for the purpose of clause (c) of this sub section, be deemed to represent the income in respect of which particulars have been concealed. 16.2 Explanation I, enacts a rule of evidence under which initial onus of offering explanation about any sum added to the income is placed on the assessee.There could be two situations, namely, that the explanation is offered or the explanation is not offered. In this case, the explanation has been offered by the assessee. Clause (B) of the Explanation further requires that the explanation is to be substantiated by the assessee and if he fails to substantiate the explanation as bonafide show ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see to claim the same amount in this year again. The default of the assessee has been considered separately in penalty proceedings by the Assessing Officer and the learned CIT(A). It is no doubt true that the levy of penalty is not mandatory. However, when same claim is made twice over without disclosing material facts at the time of making the claim for the second time, it becomes obligatory for the authorities under that Act to examine whether the facts of the case called for imposition of penalty. We are of the view that the instant case has been considered by both the lower authorities in the right perspective and, therefore, the penalty was rightly levied and upheld respectively by them. Thus, we do not find any reason to interfere wit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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