TMI Blog1985 (10) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... laring the total income of Rs. 4,137, the assessee stated in Part-IV of the return that he had received an amount of Rs. 19,499 as prize from a crossword competition. The Income-tax Officer completed the assessment under section 144 of the Act in view of the default committed by the assessee in complying with the notice served on him under section 142 of the Act. The total income computed was Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asmuch as the assessee had made a disclosure of the Income in Part-IV of the return. The Appellate Assistant Commissioner, therefore, held, following the decision of the Tribunal, that there was no gross or wilful neglect on the part of the assessee. He, therefore, set aside the Income-tax Officer's order imposing penalty under section 271(1)(c) of the Act. The Revenue, therefore, approached the T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the part of the assessee nor was it a case of fraud and, therefore, levy of penalty on the basis of the Explanation to section 271(1)(c) of the Act, on the facts of the case, was not justified ?" For reasons which we will immediately state, we are of the opinion that both the questions must be answered in the negative, i.e., against the assessee and in favour of the Revenue. Similar questions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rize for such assessee which could be shown as won in a crossword competition while submitting the return for the relevant assessment year. The court came to the conclusion that this was a clear case of fraud inasmuch as fake winners were declared so that they could convert their unaccounted money into white money as having been won in the crossword competition. In the present case also, the fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceedings under section 271 (1)(c) of the Act and in imposing penalty on the assessee under the Explanation thereto. We, therefore, hold for the reasons stated in that judgment that the Tribunal was in error in coming to the conclusion that the Revenue was not entitled to levy penalty under the said provision. We, therefore, answer both the questions in the negative i.e., against the assessee a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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