1990 (10) TMI 128

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..... by the assessee. The assessee gifted shares of M/s. N.C. John Sons Ltd., Alleppey to the minor sons of his brother N.J. Joseph who in turn had gifted certain shares in the above company on the same dates to the minor children of the assessee. He also made a cash gift of Rs. 50,000 to his wife. However, the assessee suppressed these facts and concealed the receipt of interest accrued on the cash gift and the dividend income on the shares. Hence the Income-tax Officer held that the assessee had concealed the particulars of his income and furnished inaccurate particulars thereof and a penalty under section 271(1)(c) of the Act is exigible in this case for the three years under appeal. He, therefore, levied penalty of Rs. 10,764, Rs. 17,000 .....

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..... y case, the penalty levied is excessive." It was further contended by the learned counsel for the assessee before us that in the gift-tax assessment of the assessee he has disclosed the interest income accrued on the cash gift made by him in favour of his wife. He also produced copy of the order of this Bench in the quantum appeals preferred by the assessee for the assessment years under consideration wherein the Tribunal by its order dated 3-2-1988 in ITA Nos. 94, 95 and 96 (Coch.)/84 directed the Income-tax Officer to include the proportionate amount of interest in the ratio of the amounts gifted by the assessee with relation to the total amounts available in the hands of the other persons. The learned counsel for the assessee also calc .....

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..... before the Income-tax Officer from which he could have drawn the necessary inference for inclusion of the income of the spouse and minor children in the income of the assessee. As for non-inclusion of the interest from gifted moneys by the assessee, before levying penalty, it is to be seen whether there was deliberate intention to suppress the said income or whether the omission was only accidental. In the return form the assessee had not put "nil" against the column for including the income of others. But he has left it blank. If he had put "nil" in that column, an adverse inference could be drawn against him. His failure to fill up the column can be viewed only as an inadvertent omission especially in the context of the fact that the Inc .....

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