TMI Blog2000 (1) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... n O. P. No. 17983 of 1993, the following question has been referred under section 256(2) of the Income-tax Act, 1961 (in short "the Act"), by the Income-tax Appellate Tribunal, Cochin Bench (in short "the Tribunal"), for opinion of this court : "Whether the Tribunal was right in law and fact in cancelling the penalty under section 271(1)(c) of the Income-tax Act ?" The factual position as indi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here was an addition to the extent of Rs. 1,03,250 as against Rs. 1,00,000 returned by the assessee as "income from other sources". The Assessing Officer initiated penalty proceedings under section 271(1)(c) of the Act. The assessee submitted his explanation stating that since prior to the service of notice under section 148, a revised return had been filed admitting an additional income of Rs. 1, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led before detection of any concealment and that since there was an agreed addition, the question of the assessee being required to explain the sources of investments or credits did not arise. Therefore, penalty levied was cancelled. Reliance was placed on a decision of the apex court in Sir Shadilal Sugar and General Mills Ltd. v. CIT [1987] 168 ITR 705. Since the application under section 256( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eneral Mills's case [1987] 168 ITR 705 on which the Tribunal has relied, this proposition is not culled out. There is no general principle laid down in the said case that whenever addition is made of an amount offered by the assessee to be added there cannot be any levy of penalty, or that the assessee is not required to explain sources. The actual position in law is that merely because the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion in law in mind, while deciding the case. It did not record any finding on factual aspects and acceptability of the explanation. Therefore, as suggested by learned counsel for the parties, we remit the matter back to the Tribunal for reconsideration. It shall be open to the parties to place materials in support of their respective stands. Though reference jurisdiction is limited in its operatio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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