TMI Blog2014 (5) TMI 1166X X X X Extracts X X X X X X X X Extracts X X X X ..... no point seem to have accepted the revenue’s contentions that such claimed expenditure was bogus and that it was not allowable, he offered the amount only to buy peace. There is also no finding by the AO that the appellant had failed to offer an explanation in respect of the income returned or had failed to disclose material particulars. - Decided in favour of assessee. - ITA 187/2014 - - - Dated:- 2-5-2014 - MR. JUSTICE S. RAVINDRA BHAT and MR. JUSTICE VIBHU BAKHRU For the Appellant: Mr Sanjeev Sabharwal, Sr. Standing Counsel with Mr Ruchir Bhalia, Jr. Standing Counsel. ORDER 1. The appellant is aggrieved by an order dated 30.08.2013 of the Income Tax Appellate Tribunal (ITAT) upholding the assessee s appeal in respect o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y used in the overhead bridges where earth filling is required for ramp constructed on both the sides of the bridges. The earth is taken out. From farmers under and understanding that payment will be made at the end of each day on the total earth removed with the help of the labours and dumpers. For the conduct of the business no godown premises are required and mostly the dumpers are provided by the builder for which the expenses are to be borne by the assessee including diesel, repair and maintenance, tires etc. It is further that the dumpers from the builders are always not enough when substantial amount of work is required to be done over day and night. In such events the assessee hires the services from outside since this work is more ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es travelling and other Overhead expenses. The margin in the supply of the earth soil is so thin that at times the assessee is not able to save enough to Purchase its own trucks /dumpers to save upon hiring charges. The assessee is staying in the rented house and so far, no investment is made in fixed assets. 4. Apparently, the appellant had also undertaken business in jobbing in shares of private companies on which it had earned a margin of .5% to .75% as is usual in the stock market. He did not file the D-Mat account stating that jobbing undertaken was in respect of unlisted companies. Photocopies of the transactions along with the photocopy of the statement of companies whose shares were transacted was also furnished to the AO. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT v. Upendra V. Mithani [ITA (L) No.1860/2009 (Bom.)]; CIT v. M/s Careers Education and Infotech Pvt. Ltd . [ITA No. 14/2011 (Pand H)]. Thereafter, the ITAT was of the opinion that since the Assessing Officer had nowhere stated that the offer was made consequent to the investigation carried out by him. The offer in fact was voluntary. 7. The revenue contends that the decision of the ITAT is contrary to the law laid down by the Supreme Court in the case of MAK DATA (Supra). In that case, during the course of the assessment proceedings, the Assessing Officer noticed that the documents consisting of share application forms, bank statements, memorandum of association of companies, affidavits, copies of income Tax Returns and assessment or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lusive of the amount which was surrendered later during the course of the assessment proceedings. Consequently, it is clear that the Assessee had no intention to declare its true income. It is the statutory duty of the Assessee to record all its transactions in the books of account, to explain the source of payments made by it and to declare its true income in the return of income filed by it from year to year. The AO, in our view, has recorded a categorical finding that he was satisfied that the Assessee had concealed true particulars of income and is liable for penalty proceedings Under Section 271 read with Section 274 of the Income Tax, 1961. 8. In the present case, as observed earlier, the Tribunal has relied upon rulings of seve ..... X X X X Extracts X X X X X X X X Extracts X X X X
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