TMI Blog2001 (2) TMI 260X X X X Extracts X X X X X X X X Extracts X X X X ..... e learned CIT(A) may be vacated and that of the AO be restored. 3. That the appellant craves leave to add or amend the grounds of appeal before the appeal is heard and disposed of." 3. The relevant facts of the case appearing from the orders of the authorities below are that the assessee filed return of income on 3rd Sept., 1990, declaring total income of Rs. 52,290. Subsequently, the case was selected for scrutiny. Thereafter, the assessee filed revised/voluntarily return and disclosed an income of Rs. 1,42,378 which was assessed at the same figure. Penalty proceedings under s. 271(1)(c) on the basis of original return were also initiated. A show-cause notice was also issued and in response to that the assessee submitted as under: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o returns of income filed originally on 3rd Sept., 1990, and revised on 9th Jan., 1991, and it was after lapse of 11 months the assessee was ready to enhance its profit from 42,090 to Rs. 1,42,378. This means an addition of Rs. 90,288 is on the basis of books of accounts impounded in this case and it is thus clearly established that whatever books of account the assessee produced at the initial stage of assessments did not exactly tally with the two returns of income filed earlier. The argument of the assessee in its reply that mistake was due to the acts of omission and commission by the accountant, it cannot take advantage of any such plea as it was his duty to check the particular of income before filing the return. In the second revised ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he revised return the AO has accepted the same and has proceeded to complete the assessment on the basis of revised return. And furthermore assessment has been made on the basis of revised return itself. The reason for revising the return had been fully explained to the then AO and he had verified the same. The return filed was much before the assessment, and the P L a/c statement filed subsequently showed correct income, the subsequent conduct of the assessee was within the permissible limits of law, and noway it established mens rea for concealment of income. Various, High Courts have held the similar view, that penalty for concealment of income cannot be levied where the assessee has filed revised return before assessment, thoug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The obligation of filing a return should be discharged scrupulously and sincerely, but at the same time before the assessee is mulcted with a penalty, all the circumstances and developments till the assessment is completed should be taken into account and if the collective effect of the situation is to show that the failure to return the correct income was not on account of gross or wilful neglect, the assessee should not be penalised." 6. Being aggrieved, the Department is in appeal. The learned Departmental Representative submitted that the assessee filed revised return only after discrepancies were pointed out to it. Hence, there was no justification on the part of the learned CIT(A) to delete the penalty as the true income was not d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... questionnaire issued by the AO did not specifically mention the commission which has been basis of filing of the revised return. In fact, on the date when the case was fixed for the first time, the appellant revised his return and reflected the income and corrected the mistake in the P L a/c. We do not find that this is a fit case where penalty can be imposed and we confirm the finding given by the learned CIT(A) on this issue. The appeal of the Revenue is dismissed accordingly." As the facts of the instant case are similar to those decided by the Tribunal, Amritsar Bench, in ITA No. 175/Asr/994 in the case of ITO vs. Abrol Industries Jammu, so by respectfully following the earlier decision of the Tribunal, Amritsar Bench, we find no inf ..... X X X X Extracts X X X X X X X X Extracts X X X X
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