TMI Blog2008 (8) TMI 341X X X X Extracts X X X X X X X X Extracts X X X X ..... uantum proceeding, the assessee has given a list of creditors who were not traceable after a gap of about 14 years. The Assessing Officer, vide his order dated March 23, 1985, has observed that money was already refunded along with the interest to the cash creditors - From the above, it appears that there was no mala fide intention on the part of the assessee. In the absence of mens rea, no penalt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ery clear quantification of concealed income detected on the basis of entries recorded in the seized books of account of the assessee which clearly attracts the provisions of Explanation (1) to section 271(1)(c) of the Income-tax Act, 1961 ?" 2. The facts, briefly, are that there was a police raid conducted on the assessee's premises. During the course of search, certain books of account were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upheld by the Commissioner of Income-tax (Appeals) but was cancelled by the Tribunal after observing that the police search took place on July 29, 1975, which is relevant for the assessment year 1976-77, the period of internal emergency in the country. The second search was conducted on August 10, 1983, which is relevant for the assessment year 1984-85. Due to lapse of more than a decade, the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were not traceable after a gap of about 14 years. The Assessing Officer, vide his order dated March 23, 1985, has observed that money was already refunded along with the interest to the cash creditors. 7. From the above, it appears that there was no mala fide intention on the part of the assessee. In the absence of mens rea, no penalty is sustainable as has already been held by this court in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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