TMI Blog1980 (7) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... were not maintained regularly and in the absence of a day-to-day stock account and the net profit declared by the assessee being very low, the ITO discussed the assessment with the assessee and proposed to estimate it at the income of Rs. 16,500. The assessee accepted the above proposal made by the ITO. The ITO thereafter initiated proceedings under s. 271(1)(c) of the I.T. Act, 1961, against the assessee for concealing the particulars of its income. The penalty proceedings were referred to the IAC, as, in the opinion of the ITO, the minimum penalty leviable exceeded Rs. 1,000. In reply to the show-cause notice of penalty issued by the IAC the assessee submitted a written explanation in which it took the stand that the assessment had been m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the ITO so as to avoid further dispute by way of appeals, penalties, etc., and such co-operation extended by the assessee in completing the assessment should not have been equated with a confession of concealment of income. It was further observed that the assessee had maintained such accounts as were possible and practicable in a kind of business run by the assessee and the department had not pointed out any manipulation of accounts or other indication of concealment of income. The judicial Member also agreed with the overall conclusion of the Accountant Member that the penalty, should be quashed, but he gave a different line of reasoning. According to the judicial Member, the assessee-firm was duly registered under the I.T. Act as a firm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee was doing a halwai business and was admittedly not a, big businessman in such a trade. One of the members of the Tribunal accepted the explanation given by the assessee that it had merely accepted the estimated assessment made by the ITO for the reasons which have been properly explained. The learned Member also observed that the assessee agreed to a certain assessment proposed by the ITO so as to avoid further disputes by way of appeals, penalties, etc, and such co-operation extended by the assessee in completing the assessment should not have been equated with a confession of concealment of income. It was also observed that the assessee had maintained such accounts as were possible and practicable in a business of this kind, and th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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