TMI Blog1978 (11) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... nd 1962-63 ? " A business in the name of M. M. Ali Motor Service was being carried on by Mir Madhi Hussain, father of the assessee, till his death and thereafter by the assessee himself. In the assessments for the assessment years 1956-57 and 1957-58, the assessee claimed that one-eighth of the income from that business was diverted by an overriding title to his mother, who was an heir under the Mohamedan Law, entitled to one-eighth share in the estate of the deceased, Mir Madhi Hussain. This claim was accepted by the department. At the stage of the assessment year 1958-59, and for succeeding years, the stand of the assessee was that a firm consisting of his mother, Sakina Begum, the erstwhile employee called Hussain Baksh and the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ooks are concerned, the books of the assessee showed that a consideration of Rs. 36,000 for the sale of the two lorries was received in cash through book entries passed in the account of Mir Baquir Ali. Under those circumstances, all the authorities held that the assessee alone should be taxed in respect of the income from the two lorries and consequently added a sum of Rs. 7,000 for the assessment year 1961-62 and a sum of Rs. 5,000 for the assessment year 1962-63. The other item relates to the estimate of the income from the business of petrol bunk carried on by the assessee. The assessee had debited on account of expenditure of this business a sum of Rs. 6,000 in the previous year. But in the year 1961-62, he had shown the expenditure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice is concerned, even the department was not certain about the correctness of its stand that there was no genuine firm. That was the reason why, while refusing registration and making an assessment of the entire income in the hands of the assessee, the ITO himself made a protective assessment in the name of the firm itself. Even the AAC at one stage held that the firm was genuine and was entitled to registration and it was only at later stages that the Tribunal took the view that the firm was not genuine, which view was confirmed by this court. Under these circumstances, it cannot be held that the assessee had deliberately suppressed or concealed the income or furnished inaccurate particulars so as to attract liability to penalty under s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n though such violation might have been the result of the conduct of the purchaser to whom the assessee had claimed to have sold the lorries. These circumstances clearly indicate that the case of the assessee that he sold away the two lorries to one Mir Baquir Ali was nothing but a false story. In such a context, the inference is irresistible that the assessee deliberately concealed the income from the running of the two lorries. Therefore, the Tribunal was in error in deleting or setting aside the orders of penalty in their entirety and it should have held that the assessee was liable to penalty with reference to the concealment of income from the business of plying the two lorries for the two years in question. It is not possible for th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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