TMI Blog1978 (7) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. Whether under section 17 of the Act, it is deliberate and conscious attempt at concealment or furnishing of inaccurate particulars which is liable to penalty or the penalty can be levied even in respect of accidental or clerical mistakes ? 2. Whether the assessee is absolved of the default contemplated by section 17, if he filed a revised return under section 15(4) of the Act before the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imilar discrepancies were there in respect of other revenue collections. On October 25, 1951, a notice was received by the assessee for enhancement. Thereafter, an application was moved on October 27, 1951, for permission to file a revised return. This appears to have been allowed,. and on November 7, 1951, a revised return was filed by the assessee. On November 17, 1951, a notice under s. 17 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turn were due to clerical error. On a revision being filed by the State, the Board of Revenue, taking the view that as the assessee had applied for correction of the return only after he received notice for enhancement, the filing of the revised return did not salvage the position of the assessee. It held that as the original return filed did not disclose the correct figures of collections, the pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Ali [1970] 76 ITR 696 (SC). In the case of Amjad Ali Nazir Ali v. CIT [1977] 110 ITR 419 (All), it has been held that the fact that a discrepancy in the return has been pointed out by the assessing authority is not conclusive of the matter unless it is established that the error was on account of the conscious act of the assessee. In the present case, the Board of Revenue has been swayed entirel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evidence an order under s. 17 of the Act cannot be sustained. In view of these conclusions, it is not necessary to answer the second question. The first question is answered by saying that a penalty under s. 17 of the Act can be imposed only in case there is a deliberate and conscious attempt to conceal or to furnish inaccurate particulars of income. The third question is answered in the negativ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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