9911796707
TMI Blog2005 (9) TMI 70X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal was right in holding that penalty under section 271(1)(c) was not exigible in the present case?" The assessment year in question is 1985-86. The assessee filed a return of income on March 30, 1988, declaring a loss of Rs. 2,41,647. The returns filed were accepted. The assessing authority processed the return filed by the assessee and issued a notice dated December 8, 1989, under section 148 of the Act, by reopening the assessment. In response to this notice, the assessee filed another return of income on January 12, 1990, declaring a loss of Rs. 1,04,531. On the same day, i.e. on January 12, 1990, the assessee filed a petition before the Settlement Commission. The Additional Bench of the Settlement Commission, Madras, by order dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessee further contends that he never had any intention to conceal the income or give any inaccurate particulars in order to evade tax. The assessing authority called upon M/s. Syndicate Bank, to explain the omission and the reason for not discharging their responsibility while preparing the return of the assessee. The sworn statement of one Sri T. V. Madhusudan, Officer of M/s. Syndicate Bank was recorded. The Assessing Officer rejected the explanation offered by the assessee and came to the conclusion that the assessee himself is solely responsible for furnishing the inaccurate particulars and passed order of penalty under section 271(1)(c) of the Act by his order dated March 11, 1991 levying penalty of Rs. 5,70,000. Aggrieved by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. Per contra, Sri G. Sarangan, learned senior counsel for the assessee contends that the assessee had no intention to furnish the inaccurate particulars and conceal the income and evade payment of tax. It is only on account of omission on the part of M/s. Syndicate Bank, Law and Agency Department, mistake has crept in and the moment the assessee noticed the mistake, he approached the Settlement Commission with a petition. Along with that petition before the Settlement Commission, the assessee filed the return of income declaring an income of Rs. 4,92,880 and paid the tax due thereon. This conduct of the assessee clearly indicates that there is no mala fide intention on the part of the assessee to evade tax. He justifies the order of the T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs of income. The assessee has not placed any explanation for this failure. This act on the part of the assessee does not absolve him of his responsibility to furnish the correct income as required under the income-tax law. The assessee in his written explanation dated January 22, 1990, and March 1, 1991, contends that due to negligence of his power of attorney holder namely, M/s Syndicate Bank, Law and Agency Division, mistake has crept in and that he had no intention to conceal the income or give in accurate particulars and to evade tax liability. The bank in their letter dated December 24, 1990, explained that they do not directly involve in all the business activities of the assessee or maintain or operate any bank account in connectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the assessee. The assessee is an engineer and a taxpayer for a number of years cannot contend that he signed the return of income by believing his power of attorney holder. This contention of the assessee cannot be believed for the reason that in his revised return dated January 12, 1990, he again declared a loss of Rs. 1,04,531 and did not admit the capital gains and other income. The first appellate authority rightly holds that if the explanation of the assessee is accepted then every tax evader could take shelter by shifting the blame on his clerk and accountants who invariably prepare the return for them. The contention of the assessee that because of the negligence on the part of the bank the mistake of concealment has crept in is no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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