TMI Blog1994 (2) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee-firm is engaged in the activity of construction work. For asst. yr. 1983-84 it filed return originally on 30th Oct., 1984 declaring a total income of Rs. 1,27,824. The processing of the assessment was taken up by the Assessing Officer some time in October, 1985. On the basis of processing upto that time the Assessing Officer issued a show cause notice dt. 24th Feb., 1986 requesting the assessee to comply by 5th March, 1986. That show cause notice is reproduced verbatim in the assessment order dt. 31st March, 1986 on pages 2 to 7 thereof. One of the points involved in the show cause notice was of squared up cash credits which are listed in tabular form on pages 3, 4 and 5 of the assessment order (as part of the show cause notice) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he learned Sr. Departmental Representative in his written submissions has emphasised the aspect that vide show cause notice dt. 24th Feb., 1986 issued by the ITO the concealed income had already been detected by the Department and hence the assessee was not entitled to exemption, from penalty under s. 271(1)(c) inspite of the fact that the revised return was filed when the Amnesty Scheme was operative. 5. We have very carefully considered the rival submissions. Obviously, the crucial point is whether it is a case of detection by the Department before the filing of the revised return. For deciding this issue the show cause notice dt. 24th Feb., 1986 has to be read and considered in greater detail. That notice starts with the following par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the opening para of the show cause notice reproduced in the preceding para hereinabove and the concluding para on this point reproduced in this para hereinabove shows that the Assessing Officer had called for further information inter alia on squared up cash credits. Listing of cash credits in 55 names in tabular form clearly goes to show that the information of the cash credits had already been obtained by the ITO. The concluding para reproduced in this para hereinabove clearly shows that the Assessing Officer is showing his intention to add the "cash credit of Rs. 1,64,500 to the income disclosed". He thereafter says that he is giving yet another opportunity to the assessee to prove the genuineness of all the deposits and calls for furth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncealment has been detected. Q. Where an addition is contested in appeal, whether an assessee could make a declaration and agree to pay tax thereon? A. Yes, the assessee should withdraw that appeal and make a declaration before the administrative Commissioner. In such a case a lenient view will be taken though such a declaration cannot be taken as entirely voluntary." First question reproduced hereinabove is really the crux of the matter and we have already held hereinabove vide para 6 that it is a case of detection by the Department before filing of revised return by the assessee. Second question reproduced hereinabove merely goes to show that only a lenient view would be taken in the matter of levy of penalty. This would mean tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee, first case is of the Hon'ble Gujarat High Court. Therein, the matter was restored to the file of the Tribunal for considering the effect of an advertisement given by the CBDT. The relevant part of that advertisement reproduced on page 645 of the reports [(1981) 131 ITR 643 (Guj)] is as follows: "REMEMBER EVASION OF TAX IS A CRIME If the original return filed by you is false why not file a revised return to avoid the consequences of discovery." This clearly shows that the revised returns envisaged in that advertisement were for avoiding the consequences of discovery. Obviously, it implied that discovery had already not taken place. So, that advertisement was for returns filed before discovery or detection. In the case befo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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