TMI Blog1978 (8) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... n business in cloth. During the course of the assessment proceedings for the assessment year 1970-71, the ITO found that there were a number of under-totallings of both cash and credit sales to the extent of Rs. 19,467 in all. The assessee had filed its return on the basis that the totallings were correct. When the ITO noticed that there were such under-totallings in the course of the assessment p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o 30-6-69. A scrutiny of the sales folios in the ledger disclosed that the totals were under cash to the extent of Rs. 19,467.06. The sales as per the assessee's books after correcting the totals amount to Rs. 1,82,906.58 as against Rs. 1,63,439.52 disclosed by the assessee in the trading accounts filed before me. I have reason to believe that the assessee has concealed the particulars of his inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deration the explanation given by the assessee imposed a penalty under s. 271(1)(c) in a sum of Rs. 20,000. In appeal, the order of the IAC was confirmed by the Tribunal after rejecting the contention of the assessee that the initiation of the proceedings under s. 271(1)(c) of the Act before the assessee produced the books of account pursuant to the notice dated February 24, 1971, issued under s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t and such satisfaction in the circumstances could not have been there before looking into the books of account which the ITO asked the assessee to produce on March 9, 1971. Hence, the proceedings to impose penalty initiated by the ITO, without being satisfied that there was concealment on February 27, 1971, was without jurisdiction. We are of the view that there is no substance in this contention ..... X X X X Extracts X X X X X X X X Extracts X X X X
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