TMI Blog2010 (12) TMI 852X X X X Extracts X X X X X X X X Extracts X X X X ..... . This appeal has been preferred under section 260A of Income-tax Act, 1961 (hereinafter referred to as "the Act") proposing following substantial questions of law arising out of order dated 6-12-2004 of the Income-tax Appellate Tribunal, Chandigarh Bench, Chandigarh (hereinafter referred to as "the Tribunal") passed in ITA No. 855/Chandi/93 in respect of assessment year 1984-85 : "(i) Whether on the facts and in the circumstances of the case, Hon ble ITAT was justified in deleting the penalty by holding that nothing was brought on record by the Revenue to prove that net profit arrived at by the assessee was a result of concealment of income by the assessee when it was categorically proved in the order after utilizing the documen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ddition was result of disallowance, the assessee could not be held to have concealed the particulars of income. The observations of the Tribunal are : "We, however, after perusing the paper book page-1 find that the ITAT while sustaining the addition of Rs. 6,70,681 basically relied upon the authenticity of the paper seized wherein net profit of Rs. 6,70,681 was arrived at by the ex-accountant of the assessee Sh. Sidhu for assessment year 1983-84. However, we have noticed the fact that the nothing could be brought by the revenue that such net profit arrived was a result of concealment of any income by the assessee whereas we find force in the submission of the ld. AR that such net profit was a result of disallowance of excess expenditure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee. The Tribunal has also not indicated any material in support of its finding. On the other hand, the finding recorded by the Assessing Officer is as under : "The entire blame of manipulation of figures was placed at the door of Sh. Sidhu, accountant of the assessee. It was further contended that at one stage the accountant applied GP rate of 19 per cent and the same was applied at 13 per cent thereafter and the same was made the basis for the additions. The assessee wants to convey that main addition are only on account of higher gross profit rate after deducting the trading discount from turnover. The assessee wants to convey that applying a GP rate of 19.7 per cent did not make the assessee liable for penal action under section ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
