9911796707
TMI Blog2013 (11) TMI 1377X X X X Extracts X X X X X X X X Extracts X X X X ..... r the assessment year 1998-99. 3. The appeal has been preferred on substantial questions of law as follows:- "(1) Whether on the facts and in the circumstances of the case, the Tribunal is justified in law in deleting the penalty u/s 271 (1) (c) holding that assessing officer has not carried out detailed enquiry about genuineness of unexplained credits of Rs.12,61,280/- ignoring that the extensive enquiry was conducted through Tehsildar to ascertain the existence of creditors? (2) Whether on the facts and in the circumstances of the case, the Tribunal is justified in law in deleting penalty levied u/s 271 (1) (c) of Rs.4,37,500/- by holding that the enquriy made by the assessing officer at the time of assessment is not sufficient to levy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not file any appeal against the order on which the A.O. issued notice under Section 274 for levying penalty to which the assessee filed reply. The AO levied penalty under Section 271 (1) (c) of the Act at 100% of the income tax payable on the assessed income of Rs.12,61,280/- i.e. Rs.4,37,500/-. The CIT (A) confirmed the order of penalty. 6. The ITAT has allowed the appeal and set aside the penalty order on the ground that primary burden lies on the revenue to prove that the assessee had concealed his income. The A.O. was required to arrive at a satisfaction that there is primary evidence to establish that the assessee had concealed the particulars or furnished inaccurate particulars. for this purpose the onus was to be discharged by the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he present case we find that after the matter was remanded, the A.O. did not carry out any enquiry. He relied upon the enquiry in the previous assessment and did not give sufficient reasons to reduce the additions towards unexplained creditors at Rs.12,49,284/-. Thereafter when the A.O. initiated proceedings for levy of penalty under Section 271 (1) (c), he again did not give opportunity to the assessee to explain the genuineness of the creditors. The nature of business of the assessee was to purchase raw hides from butchers, who do not have any established place of business. The assessee explained that the butchers residing in small villagers are uneducated persons, who migrate from time to time. The enquiry carried out for the accounting ..... X X X X Extracts X X X X X X X X Extracts X X X X
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