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TMI Blog2014 (1) TMI 1121X X X X Extracts X X X X X X X X Extracts X X X X ..... dispose off all the three appeals of the Assessee by a consolidated order for the sake of convenience. We therefore proceed with the facts of case in the case of Jindal Fashion ITA No. 215/Ahd/2013. 3. The facts as culled out from the material on record are as under. 4. Assessee is a firm engaged in the business of trading in synthetic cloth. A survey under section 133A of the Act was carried out at the business premises of the Assessee on 03.10.2002. During the course of survey, statement of Shri Ashok Kumar Jindal was recorded wherein he admitted unaccounted income of Rs. 1,41,85,715/- and the break up of the same among the group concerns was stated as under:- Name of the Assessee Cash Stock Total M/s Jindal Creation 4,00,000/- 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iscrepancy of cash amounting to Rs. 14,03,958/- was accepted by the A.O. The explanation with respect to unexplained investment in stock was not accepted by the A.O. and accordingly an addition was made to the total income. Against the quantum addition made by the A.O., Assessee preferred appeal before CIT(A). CIT(A) restricted the addition made by the A.O. to Rs. 7,31,800/- as against Rs. 30 lacs made by A.O. Against the order of CIT(A), Revenue preferred appeal before Tribunal. Tribunal upheld the decision of CIT(A) and thus dismissed the appeal of the Revenue. On the aforesaid addition of Rs. 7,31,800/- which was confirmed by CIT(A), penalty under section 271(1)(c) was levied as the A.O. was of the view that Assessee has concealed the in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no. 1 decided against the appellant). 7. Aggrieved by the order of CIT(A), the Assessee is now in appeal before us. Before us, the ld. A.R. submitted that at the time of survey Shri Ashok Kumar Jindal gave sale price of the stock instead of purchase price and therefore the rate applied in the inventory was sales rate and therefore it was submitted that the gross profit should be appropriately adjusted to arrive at the cost price. The ld. A.R. further submitted that against the addition of Rs. 30 lacs made by the A.O. CIT(A) restricted the addition to Rs. 7,31,800/- against which the Revenue preferred appeal before Hon. ITAT. ITAT upheld the order of CIT(A) and restricted the addition to Rs. 7,31,800/-. The ld. A.R. further submitted that a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refore submitted that the penalty be deleted. 8. The ld. D.R. on the other hand supported the order of A.O. and CIT(A) and further submitted that the cases relied by the Assessee are distinguishable on facts and therefore the ratio cannot be applied to the case of Assessee. 9. We have heard the rival submissions and perused the material on record. It is an undisputed fact, that during the course of survey excess stock was found and the A.O. had made the addition amounting to Rs. 30 lacs. In the quantum proceedings, CIT(A) agreed with the submissions made by the Assessee that some stock was valued at sale price instead of cost price and also the average price of stock found at the time of survey was taken at Rs. 45.36 per mtr as compared t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o furnished all the material facts relevant thereto, the disallowance of such claim cannot automatically lead to the conclusion that there was concealment of particulars of his income by the assessee or furnishing inaccurate particulars thereof. What is to be seen is whether the said claim made by the assessee was bona fide and whether all the material facts relevant thereto have been furnished and once it is so established, the assessee cannot be held liable for concealment penalty under s. 271(1) (c) of the Act. It is also well settled that assessment proceedings and penalty proceedings are separate and distinct and the finding in the assessment proceedings cannot be regarded as conclusive for the purposes of the penalty proceedings. Cons ..... X X X X Extracts X X X X X X X X Extracts X X X X
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