TMI Blog2004 (7) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... losed a particular concealed income and surrendered it for the tax and tax has been paid along with interest. In these circumstances, the Tribunal has committed error in restoring the penalty order of the Assessing Officer. - - - - - Dated:- 12-7-2004 - Judge(s) : Y. R. MEENA., PRAKASH TATIA. JUDGMENT This appeal was admitted in terms of the following questions: "(i) Whether, on the facts and circumstances of the case, the Tribunal was justified in restoring the penalty levied under section 271(1)(c) of the Act in respect of income which was offered to be surrendered for the assessment year 1987-88 during the examination of its karta under section 132(4) of the Act, when search was being conducted on its premises? (ii) Whether t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cer has also initiated penalty proceedings under section 271(1)(c) of the Act and imposed the penalty of Rs. 10,71,320 vide order dated August 31, 1995. In appeal before the Commissioner of Income-tax (Appeals), the Commissioner of Income-tax (Appeals) has cancelled the penalty vide his order dated December 18, 1995. In appeal before the Tribunal, the Tribunal restored the penalty imposed by the Assessing Officer. The case of the assessee is that during the course of search, the assessee has surrendered Rs. 22,32,000, on that amount there should be no penalty in view of the Explanation 5 to section 271(1)(c) of the Act. The penalty has been imposed on the ground that as tax has not been paid along with interest in time, the benefit of Exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld that the tax should be paid before the completion of assessment when the Assessing Officer is required to record the reasons for his satisfaction for initiation of penalty proceedings. In this case, the return had not been filed on the due date and the additional income had not been declared during the relevant year. Besides, the tax had also been paid till the date of assessment by the Assessing Officer. We find that the learned Commissioner of Income-tax (Appeals) could not examine the provisions of law in detail and appreciate the facts of the case correctly. The order passed by the learned Commissioner of Income-tax (Appeals) cancelling the penalty levied under section 271(1)(c) of the Act is hereby set aside and that of the Assessin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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