1993 (7) TMI 347 - AT - Income Tax

Summary

Issues:
1. Imposition of penalty under different sections of the IT Act for assessment years 1982-83 and 1983-84.
2. Delay in filing returns by the assessee.
3. Justification for delay in filing returns.
4. Concealment of income and imposition of penalty under section 271(1)(c).
5. Assessment of unexplained assets and imposition of penalty under section 271(1)(c).
6. Failure to furnish a statement of advance tax payable and imposition of penalty under section 273(1)(b).

Analysis:

Imposition of Penalty under Different Sections:
The judgment involves appeals by the assessee against penalties imposed under various sections of the IT Act for assessment years 1982-83 and 1983-84. The penalties were imposed under sections 271(1)(a), 273(1)(b), and 271(1)(c) for different reasons related to the assessment years in question.

Delay in Filing Returns:
The returns for the assessment years 1982-83 and 1983-84 were filed with a delay of two months each. The delay was attributed to non-finalization of accounts, particularly of a firm in which the assessee was a partner. The justification for the delay was supported by evidence showing late filing by another related firm. However, no specific evidence was presented for the assessment year 1982-83.

Concealment of Income and Penalty under Section 271(1)(c):
In one of the appeals, unexplained assets were discovered during a search, leading to the imposition of a penalty under section 271(1)(c). The assessee voluntarily filed a revised return showing additional income, which was accepted by the department. The contention was that there was no concealment of income as the revised return was filed voluntarily to maintain good relations with the department.

Assessment of Unexplained Assets and Penalty under Section 271(1)(c):
The assessment order detailed various unexplained investments and incomes found during a search conducted on the premises of the assessee. The revised return filed by the assessee included these items, and the assessment was completed based on the revised figures. The penalty was challenged on the grounds that there was no finding of concealment on the part of the assessee.

Failure to Furnish Advance Tax Statement and Penalty under Section 273(1)(b):
Penalties were imposed under section 273(1)(b) for failure to furnish a statement of advance tax payable. The assessee claimed to have filed estimates of advance tax payable, but verification of the filing was required. The appeals related to these penalties were restored for further verification.

Conclusion:
The judgment addressed various issues related to penalties imposed under different sections of the IT Act for assessment years 1982-83 and 1983-84. It discussed delays in filing returns, justification for delays, concealment of income, assessment of unexplained assets, and failure to furnish advance tax statements. The decision in each appeal was based on the specific circumstances and evidence presented, leading to the deletion or reduction of penalties in some cases and further verification in others.