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Issues involved: Appeal against penalty u/s 271(1)(c) for concealment of income in the assessment for asst. yr. 1979-80.
Summary: The assessee appealed against a penalty of Rs. 60,000 u/s 271(1)(c) imposed for not disclosing the correct value of closing stock, resulting in an enhanced loss declared. The CIT(A) upheld the penalty stating no mala fides were required for concealment. The assessee claimed the omission was inadvertent and submitted explanations. The learned counsel argued the absence of guilty intention due to continuous heavy losses and cited precedents. The Departmental Representative argued that negligence amounts to concealment, supported by legal judgments. After considering submissions and judgments, the Tribunal found the assessee's explanation credible. The Tribunal noted the absence of any gain to the assessee or loss to the Revenue due to the mistake, which was admitted promptly. Expln. 4(a) to s. 271(1)(c) applies to positive income, not assessed loss. The Tribunal concluded the assessee had no guilty intention, canceling the penalty and allowing the appeal.
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