TMI Blog1988 (9) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... me-tax Officer represented revenue receipts and the assessee concealed the same, for the purpose of imposing penalty under section 271(1)(c) of the Income-tax Act, 1961 ?" The facts briefly stated are that in the course of the assessment, the Income-tax Officer noticed credits in the names of several persons in the books of the assessee. It was represented that these amounts represented loans taken on hundis from those persons. Confirmation letters from them had been filed with a view to verify the genuineness of the transactions. Notices were issued to these parties by the Income-tax Officer. In regard to some of them, the notices could not be served and some of them did not comply with the notices. Three of the parties, however, appeare ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... did represent the income of the assessee and the imposition of penalty, in the circumstances was untenable. It was contended that the disclosure petition had been filed with a view to get the matter settled if possible and the same having not been accepted, the conclusion that there was any admission of concealment of income was unjustified. A copy of the petition that had been presented had also been filed before the Tribunal. Reliance was placed on the judgment of the Supreme Court in CIT v. Anwar Ali [1970] 76 ITR 696. The Tribunal, however, set aside the order of penalty holding that, in the facts and circumstances of this case, imposition of penalty was not justified. The Tribunal, on going through the disclosure petition, held as fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ground that the assessee was unable to discharge the burden. The assessee had filed confirmation letters and some of the parties appeared before the Income-tax Officer and confirmed the loans though in respect of some, notices could not be served and some of them did not comply with the notices. Merely on this ground and in the circumstance that an addition was made, it cannot be inferred that the assessee has concealed his income or furnished inaccurate particulars thereof. It may also be mentioned that the Department did not accept the petition under section 271(4A) and, accordingly, they cannot rely on the disclosure petition for the purpose of imposing penalty on the assessee without there being any unequivocal admission. Reference h ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
