Tax Management India. Com
                        Law and Practice: A Digital eBook ...

Category of Documents

TMI - Tax Management India. Com
Case Laws Acts Notifications Circulars Classification Forms Manuals SMS News Articles
Highlights
D. Forum
What's New

Share:      

        Home        
 

TMI Blog

Home List
← Previous Next →

1997 (9) TMI 641

..... this consolidated order. Rival contentions have been heard and records perused. 2. The dispute involved in these appeals is relating to penalty under s. 271(1)(c) of ₹ 1,50,000 for the asst. yr. 1986-87 and ₹ 92,221 for the asst. yr. 1988-89. The relevant facts in this case are that the appellant is a private trust deriving income from rent and interest. During the course of assessment proceedings for the aforementioned assessment years, it was observed by the AO that assessee had reflected a sum of ₹ 5,00,000 and ₹ 3,07,500 for the asst. y₹ 1986-87 and 1988-89 respectively, as having received from number of parties as gifts. These amounts had either been received by cheques or by drafts. Assessee furnished con .....

X X X X X X X

Full Text of the Document

X X X X X X X

..... concealment of income. 4. Assessee appealed to the CIT(A) but without any success. The penalty imposed by the AO was confirmed by the CIT(A). The CIT(A) referred to the decision of the Allahabad High Court in the case of Banaras Chemical Factory vs. CIT (1977) 108 ITR 96 (All), in support of the finding that, inasmuch as the assessee discloses concealed income voluntarily, there could be no manner of doubt that assessee was guilty of concealment. Reliance was placed on the decision of the MP High Court in the case of Addl. CIT vs. Bharatiya Bhandar (1980) 122 ITR 622 (MP), in support of the finding that when assessee includes the cash credits in the return filed in response to the notice under s. 148, it amounts to admission of concealed i .....

X X X X X X X

Full Text of the Document

X X X X X X X

..... ed. 6. It was further contended that the AO has not invoked any explanation under s. 271(1)(c) and as such the validity of penalty has to be judged without reference to the Expln. to s. 271(1)(c). In this connection, reliance was placed on the decision of the Bombay High Court in the case of CIT vs. P. M. Shah (1993) 203 ITR 792 (Bom). It was accordingly urged that the penalty imposed for both the assessment years may be cancelled. 7. The learned Departmental Representative, on the other hand, urged to sustain the penalty imposed. It was contended that the assessee had introduced gifts of 100 parties in the asst. yr. 1986-87. Out of which only 8 parties could be produced. Affidavits of 32 persons were filed before the AO but in respect of 6 .....

X X X X X X X

Full Text of the Document

X X X X X X X

..... ed for production of the parties. Since assessee was unable to produce the parties the AO was given the option by the assessee of making the addition subject to no penalty. The AO accepted the offer in part in so far as addition was made only in respect of 60 per cent of the credits. However, the AO initiated penalty proceedings on the ground that the offer had been received at the eleventh hour after scrutiny. 9. In the penalty proceedings assessee tried to improve his case by furnishing additional evidence in the form of affidavits of all the creditors appearing in its books of accounts. The AO did not make any enquiry except insisting upon the personal presence of the donors. It is on these facts, we were called upon to decide as to whet .....

X X X X X X X

Full Text of the Document

X X X X X X X

..... d to furnish the evidence in support of the genuineness of entries in the books of account but has failed to furnish evidence in respect of part of the entries and there is no material with the AO to suggest that the entries represent concealed income of the assessee, the mere fact that the assessee has offered income for assessment would not be sufficient to uphold the levy of penalty. Reliance is placed on the decision of the Bombay High Court in the case of CIT vs. Kiran & Co. (supra). In that case there was a search in the course of which the IT authorities discovered certain discrepancy in the records maintained by the assessee in respect of stocks. Assessee had made a conditional offer for settlement subject to the condition that .....

X X X X X X X

Full Text of the Document

X X X X X X X

 

 

← Previous Next →

 

 

|| Home || About us || Feedback || Contact us || Disclaimer || Terms of Use || Privacy Policy || Database || Members || Refer Us ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.
|| Blog || Site Map - Recent || Site Map ||