TMI Blog2004 (9) TMI 294X X X X Extracts X X X X X X X X Extracts X X X X ..... ound as per the working. Explanation was called for in this behalf. The assessee replied that these amounts were received from various persons who had booked properties in the buildings/schemes supervised by the assessee. Vide letter dt. 12th March, 1997 the assessee furnished its explanation giving the details in this behalf. However, ultimately the assessee offered the amount for taxation in asst. yrs. 1993-94 and 1994-95 in following items: "8. We most humbly and respectfully submit that your Honour's action to bring to tax the amount in respect of Nimesh Marfatia and Nalin Patel is wholly unjustified since these amounts are booking deposits and not deposits in the nature of advance or loan. We however desire to submit with a view to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eedings qua the above offer as made by it." The AO taxed the same. However, penalty proceedings were initiated where it was contended that the offer was made with clear stipulation that if the same was not acceptable then the same should not be taken as admission and the assessee would be free to contest the additions. The assessee was receiving deposits for booking of flats/tenements in the schemes and to avoid the litigation the amount was offered. The AO, however, imposed the penalty at the rate of 150 per cent of the tax sought to be evaded. The same was confirmed in first appeal. 3. The learned counsel for the assessee reiterated the facts and emphasised that the offer of the assessee was voluntary and clearly conditional which i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no penalty action would be taken, levy of penalty was justified. 5. We have heard the rival contentions and perused the material available on record. The terms and conditions of disclosure offer made by the assessee are reproduced above and are self-explanatory. The assessee was building organiser and his plea that some persons advanced the amount for booking of properties has not been found to be untrue. To avoid litigation in respect of Natin Patel and Nimesh Marfatia, the assessee agreed for addition on peak credit subject to above conditions. If the AO had clinching evidence of concealment, then the offer may not have been accepted and the same should have proceeded on the basis of the material available on record. The AO has made th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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