TMI Blog2005 (1) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... ach on the part of the assessee in not disclosing his true income. All the suppression or/and disclosure as taken note of supra and which were made the basis, were very much within the knowledge of the assessee-it being a professional led company managed by chartered accountants. In other words, the intention to suppress or/and take the benefit of incorrect disclosure seems apparent thereby attracting the rigour of section 271(1)(c) ibid. We answer both the questions against the assessee and in favour of the Revenue - - - - - Dated:- 3-1-2005 - Judge(s) : A. M. SAPRE., ASHOK KUMAR TIWARI. JUDGMENT The judgment of the court was delivered by A.M. Sapre J. - This is an income-tax reference made under section 256(1) of the Income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see in September, 1980. It is in this search operation, several incriminating documents were seized. On scrutiny, it inter alia, revealed that the assessee had debited personal insurance premium of the directors in the books of the company, which in fact, ought not to have been debited, that cost of plywood and mirrors was debited in the books of the company, with a view to inflate the expenses in respect of packing material, wrongly and lastly, it did not disclose the value of stocks valuing Rs. 1,01,044 lying at Madras. It is these factors, which gave rise to reopen the concluded assessment cases of the year in question by taking recourse to section 147(a) of the Act. An explanation was sought from the assessee and finding the same to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the factual explanation and found no merit in the same. The Tribunal had jurisdiction to go into the factual explanation and then to accept the same or reject it. The same was rejected. The reference court cannot go into the sufficiency or/and correctness of the explanation in its reference jurisdiction. No question of law has been referred to this court on that issue. In this view of the matter, the finding recorded by the Tribunal on that question is binding on the reference court. Coming to the last question referred supra, we find no merit in the same. The Assessing Officer has jurisdiction to initiate penalty proceedings under section 271(1)(c) of the Act, once it comes to his notice that the assessee has furnished inaccurate parti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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