2001 (8) TMI 53

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... 994-95, as against the returned income of Rs.4,08,950, the assessment was completed on a total income of Rs.8,72,302. Proceedings under section 271(1)(c) were initiated and Rs.2,66,427 was imposed as penalty. The assessee questioned the imposition of penalty on the ground that it had surrendered its income for addition to buy peace and tranquility and there was an understanding not to levy penalty .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... that there is no material on record to show that there was any conditional offer for addition to the returned income. On the contrary, in view of the assessee's admission that he was not in a position to substantiate the claims for expenses, the accounts were rejected and the net profit rate was applied to the admitted receipts. The proceedings were initiated for furnishing inaccurate particulars .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... nt imposition of penalty. As the records would go to show that the penalty was imposed for furnishing inaccurate particulars, the alternate stand of the assessee has not been examined by the Tribunal. In the circumstances, instead of keeping the matter pending, we direct the Tribunal to rehear the matter. It shall permit the assessee to place fresh material, if any, sought to be relied upon and pa .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X