TMI Blog2014 (1) TMI 1628X X X X Extracts X X X X X X X X Extracts X X X X ..... COURT ] is not applicable in the case of the assessee - consequence would be that the persons who make claims of this nature would otherwise get away without paying the tax legally payable by them, if their cases are not picked up for scrutiny. In view of the aforementioned discussion, we are of the view that the assessee's case attracts the provision of section 271(1)(c) of the Act and we do not find any justifiable reason to interfere with the decision of the learned Commissioner of Income-tax (Appeals) confirming the penalty levied by the Assessing Officer - Order of CIT(A) upheld - Decided against assessee. - ITA No. 6021/Mum/2013 - - - Dated:- 15-1-2014 - SHRI P.M. JAGTAP AND DR. S.T.M. PAVALAN, JJ. For the Appellant : Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s under section 271(1)(c) of the Income-tax Act. 1961 were initiated for concealing the particulars of income. During the penalty proceedings, it was the contention of the assessee that the advance written off was in the nature of trading loss whereas the return of income of the assessee was filed by the accountant without taking any assistance of the professional and claimed the same as bad debts. However, the Assessing Officer rejected the contention of the assessee on the reason that the consequence would be that the persons who make claims of this nature, actuated by a mala fide intention to evade tax otherwise payable by them would get away without paying the tax legally payable by them, if their cases are not picked up for scrutiny. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me does not arise as proper disclosure was made in the audited accounts. Being a business getting irrecoverable, the assessee claimed it as bad debts under section 36(1)(vii) of the Act in its return of income. During the course of assessment proceedings the assessee, in view of the nature of transaction, the non-accessibility of the documents for the transaction, in order to buy peace and avoid any further litigation, had withdrawn its claim of write off and revised its computation of total income. The Assessing Officer, while accepting the said revised computation, however alleged that advances were written off in the absence of any documentary evidence. Simply, because the assessee withdrew its claim of write off, it does not mean that p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here cannot be any concealment of income and the penalty levied/confirmed by the Assessing Officer/Commissioner of Income-tax (Appeals) ought not to be sustained. On the other hand, the learned Departmental representative has vehemently argued that the claim of the assessee is not justified and has stated that it is not the case of trading loss. The reasons stated by the assessee for not providing the details of the sundry debtors during the penalty proceedings are not justified. Also the learned Departmental representative has demonstrated that the decisions relied on by the learned authorised representative are not applicable in the case of the assessee. 5. We have heard both sides and perused the material on record. Firstly, on the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ired details. Thirdly, it is the contention that the assessee, in view of the nature of transaction, the non- accessibility of the documents for the transaction, in order to buy peace and avoid any further litigation, had withdrawn its claim of write off and revised its computation of total income. In this connection, it is pertinent to mention that the statute does not recognise this type of defence under Explanation 1 to section 271(1)(c) of the Act. It is trite law that the voluntary disclosure does not release the assessee from the mischief of penal proceedings. The law does not provide that when an assessee makes a voluntary disclosure of his concealed income, he has to be absolved from penalty. This proposition is supported by the rec ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
