TMI Blog2020 (4) TMI 372X X X X Extracts X X X X X X X X Extracts X X X X ..... n-existing assets was made consciously. These concurrent findings of fact by the lower authorities was confirmed further by a Division Bench in CRN INVESTMENTS P. LTD. [ 2007 (2) TMI 166 - MADRAS HIGH COURT ] dismissing the petitioners' appeal. This order has attained finality. The petitioner had in the meantime sought compounding of the offence that was rejected on the ground that the case of the petitioner fell within the parameters of an 'Offences involving major fraud or scam or misappropriation' or 'Offences committed by an assessee, who has enabled others in large scale concealment of income in a systematic and planned way over a number of years like hawala entries, bogus trusts, bogus remittance etc.'. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs to Bellary Steels at all. Bills were raised merely to facilitate funding from credit institutions. The lessee had not even produced the original delivery challans. The transaction was tripartite, involving the manufacturer/supplier, the lessor/the petitioner and the lessee/Bellary Steels. Pursuant to the survey, the petitioner revised its return of income withdrawing the claim for depreciation and remitting the entire tax payable on the transaction in question. 3. While completing the assessment, proceedings for the levy of penalty under Section 271(1)(c) were initiated for concealment of income and furnishing of inaccurate particulars of income. 4. The petitioner contended that it was not aware of the forged documents and had proc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ving major fraud or scam or misappropriation' or .... 'Offences committed by an assessee, who has enabled others in large scale concealment of income in a systematic and planned way over a number of years like hawala entries, bogus trusts, bogus remittance etc.'. 8. The above portion in italics constitute the guidelines of the Central Board of Direct Taxes in F.No.285/90/2008IT(Inv.)/12 dated 16th May 2008 that have been relied upon by the Chief Commissioner of Income Tax in rejecting the request for compounding. 9. Before me the petitioner hardly has any defence to offer except to refer to its letter dated 26.03.2014 seeking a clarification from the respondent in respect of anticipated prosecution proceedings for the AY 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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