TMI Blog1998 (8) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... regarded in considering whether the penalties imposed were justifiable? - 4. Whether having regard to the filing of the revised return which is admission of the correct assessable income, the Appellate Tribunal is justified in holding that the penalty if held to be leviable, would be only that calculated in accordance with the law as it stood on the date when the penalty was imposed, viz., taking the tax avoided as the measure of penalty as per the law which stood at the time of filing the original return? - 5. Whether, in any event, the decision of the Appellate Tribunal cancelling the penalties under section 271(1)(c) is not unreasonable as being based on irrelevant consideration ignoring material and relevant facts and for that reason un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1972-73 to 1976-77 and, as far as 1977-78 is concerned, in the absence of accounts, the excess of investments over available funds amounting to Rs. 88,600 would be offered as his income assessable in that year. He also mentioned in that petition that there was no incriminating document found during the search for the earlier years. He concluded by stating that he should be saved from penalty and prosecution, as he had filed the settlement petition in a spirit of co-operation. The Commissioner, by his order dated May 23, 1977, directed the assessee to file his returns of income under section 147(a) of the Income-tax Act for the years 1972-73 to 1974-75. He also added the amount, now offered to the income already assessed in respect of each ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is of accretion to wealth computed on the basis of the seized material and other incriminating evidence, the Appellate Tribunal is justified in holding that revised returns filed by the assessee cannot be regarded as sufficient evidence of admission of concealment of income? 3. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is justified in law in holding that the materials seized and the statement given have to be disregarded in considering whether the penalties imposed were justifiable? 4. Whether having regard to the filing of the revised return which is admission of the correct assessable income, the Appellate Tribunal is justified in holding that the penalty if held to be leviable, would be only t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would only encourage the assessees who deliberately conceal their income to escape consequences of their illegal actions. We find substance in the submission for the Revenue. There can be no doubt whatsoever on the facts admitted by the assessee himself that the assessee had concealed his income for these assessment years. It was his own case before the Commissioner that the assessee had put up a valuable construction out of his own monies and that he had failed to report his true income for those years. He had himself estimated the amount of the income, which he had concealed, and had offered the amount so concealed for taxation. It was his hope that by that act of his, the Commissioner would be persuaded to exonerate him from the levy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tatement of his accountant, and which statement was accepted by the assessee as reflecting the correct state of affairs. The assessee had stated in the petition that income to the tune of Rs. 2,50,000 had not been shown in his returns of income, though that amount ought to have been shown. The filing of the revised returns was not a purely voluntary act unconnected with the search or unconnected with the statements given by his accountant. The Tribunal, therefore, was in error in holding that the assessee was not liable to be penalised for concealment of his income during these assessment years. The Tribunal has further held that if the assessee is to be regarded as having concealed his income, the law to be applied is the law as it sto ..... X X X X Extracts X X X X X X X X Extracts X X X X
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