TMI Blog2001 (8) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... er addition of Rs.6,156 on account of sales tax and Rs.9,738 by disallowing the claim regarding payment of royalty. Thus, a total addition of Rs.93,894 was made. The assessee filed an appeal before the Commissioner. The additions were confirmed. Not satisfied with the order, the assessee filed a second appeal before the Tribunal. On consideration of the matter, the Tribunal found that "it will meet the ends of justice if an addition of Rs.40,000 is sustained" in the trading account. So far as the payment of sales tax is concerned, a deduction of Rs.1,956 was allowed. The addition on account of royalty was sustained. Thus, relief to the extent of Rs.39,956 was allowed to the assessee. The Revenue did not challenge the order passed by the Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 31, 1998, shows that the assessee had claimed expenses on account of the cost of coal and labour charges, etc. According to the assessee, it had paid for the purchase of coal at Rs.779.82 per metric tonne. The Assessing Officer had taken the view that the expense on account of the price of coal was higher than the average rate of purchase disclosed by another assessee. In response to this it was pointed out by the assessee that its brick-kiln was "situated at a further distance of 40 kms. and, therefore, transport charges were bound to be higher". Similarly, with regard to the labour charges, etc., it had been pointed out that the assessee was making tiles which required greater effort and thus there was a higher cost. The Revenue did no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s established on the record. Faced with this situation, Mr. Sawhney submits that the assessee's case is covered by Explanation (1). Is it so? The essential pre-condition for invoking the Explanation to the provision is that the assessee "fails to offer an explanation or offers an explanation which is found by the Assessing Officer or the Commissioner (Appeals) to be false". It is only in such a situation that the Assessing Officer can invoke the Explanation and impose penalty. However, in the present case, the assessee had offered a plausible explanation and this explanation has not been found to be false. On the contrary, it has been partly accepted. Thus, Explanation (1) does not, in the facts and circumstances of this case, furnish ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
