TMI Blog2010 (10) TMI 515X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeals) has rightly confirmed the penalty – Appeal dismissed - 1975 TO 1980 (DELHI) OF 2010 - - - Dated:- 8-10-2010 - RAJPAL YADAV, A.K. GARODIA, JJ. Shyam Behari for the Appellant. Gananand Meena for the Respondent. ORDER 1. The present six appeals are directed against the common order passed by the learned CIT(A) dated 22-2-2010 for assessment years 1975-76 to 1990-91. The grounds of appeals taken by the assessee are not in consonance with Rule 8 of the ITAT s Rules, they are descriptive and argumentative in nature. In brief, the grievance of assessee is that Learned CIT (Appeals) has erred in confirming the penalty under section 271(1)(c) of the Income-tax Act, 1961 in respect of profit computed on an estimate basis. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... brief facts of the case are that the assessee Shri Shyam Behari was running a proprietaryship concern in the name and style of M/s. Ashok Oil Flooring Mills, Gandhi Chowk, Hissar where he was grinding grain and expelling oil from mustard etc. He derived income on sale of oil and oil cake. He had also interest income from the money lending activity. A search and seizure operation was carried out at his residential premises as well as business premises on 20-4-1993 under section 132(1) of the Act. During the course of search, certain books of account and loose papers apart from cash and jewellery were found. On perusal of the documents, it revealed that assessee had unaccounted transactions over the period from 1-4-1984 to 19-4-1993. Accord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch was made by the Assessing Officer on the ground that during the course of search, documentary evidence was found exhibiting the involvement of assessee in selling the goods out of books and recording expenditure. He is keeping two set of books, one was meant for income-tax purpose and one was made for himself only. The second set was also found because of search. From this second set of books, profit element has been worked out and it has been added as income of the assessee. Learned CIT (Appeals) has confirmed the penalty in respect of this addition in all the assessment years. 6. Learned DR has pointed out that the case of the assessee is that the addition has been made on an estimate basis and, therefore, no penalty is imposeable. H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oncealed the particulars of his income or furnished inaccurate particulars of such income. He may direct that such person shall pay by way of penalty. ( i ) and (Income-tax Officer) ** ** ** (iii) in the cases referred to in Clause (c) or Clause (d), in addition to tax, if any, payable by him, a sum which shall not be less than, but which shall not exceed three times, the amount of tax sought to be evaded by reason of the concealment of particulars of his income or fringe benefit the furnishing of inaccurate particulars of such income or fringe benefits : Explanation 1. Where in respect of any facts material to the computation of the total income of any person under this Act, (A) Such person fails to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out there being anything to indicate so, statutory deeming fiction for concealment of income comes into play. This deeming fiction, by way of Explanation 1 to section 271(1)(c) postulates two situations; (a) first whether in respect of any facts material to the computation of the total income under the provisions of the Act, the assessee fails to offer an explanation or the explanation offered by the assessee is found to be false by the Assessing Officer or Learned CIT (Appeals); and, (b) where in respect of any fact, material to the computation of total income under the provisions of the Act, the assessee is not able to substantiate the explanation and the assessee fails to prove that such explanation is bona fide and that the assessee had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... concealed the particulars of income and has furnished inaccurate particulars of income . According to the Hon ble High Court, these expressions have not been defined either in section 271(1)(c) or elsewhere in the Act, but perusal of these expressions, one thing is clear that these two circumstances are not identical in details although they may lead to the same effect, namely, keeping of a certain portion of income from the knowledge of the department. The former is direct and the latter may be indirect in its execution. According to the Hon ble High Court, the word concealed is derived from the latin concelare which emplies to hide. Webster in his new international dictionary equates its meaning to hide or withdraw from observation ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
