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TMI Blog2000 (1) TMI 142X X X X Extracts X X X X X X X X Extracts X X X X ..... he books of account maintained by the assessee. He noticed certain entries relating to purchase of clay, fire wood, etc., noted in the rough cash books. He also noticed that these entries were omitted to be entered in the fair book by the assessee for the purpose of assessment which was meant for production before the Income-tax authorities. After identifying the lapses in the rough book and the fair book, the Inspector using his powers of identification, left the two books after placing marks of identification. Thereafter, a summons under section 131 was issued to the assessee on 9-8-1991 to produce all the books of account maintained by it as a part of the assessment proceedings. The assessee produced the books of account, except the roug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r put his marks of identification, the Assessing Officer held that the assessee's intention is clear and motivated as the production of these two books before the income-tax authorities would land the assessee in serious problem of detection of concealment. 38. In the light of the above facts, the Assessing Officer levied the impugned penalty against the maximum of Rs. 10,000 specified in the Act. Aggrieved by the levy of penalty, the assessee approached the learned first appellate authority. 39. It was contended before the learned first appellate authority that the staff members of the assessee were not aware of what the Inspector was doing during his visit to the business premises of the assessee and that they did not notice the Inspect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is point, the manager had no explanation. However he tried, to explain that the '1st account' relates to cash purchases and 'IInd account' relates to credit purchases. To substantiate his argument he could not show relative entries in the journal or ledger of the corresponding period. I have identified the books by signing the first page and page Nos. 155 to 160. Rough cash book for the period 6-12-1990 to 17-6-1991 : In this book also purchase of firewood and clay are entered in pages 155 to 160. Here again the purchases of clay are described as '1st account' and 'IInd account' which are not seen passed through the day book. I have identified this register by signing at pages 1, 155 to 160." The above report was obtained by the Assistant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t even after a prolonged search. The assessee's representative further submitted that since the petitioner has appeared before the Assistant Commissioner of Income-tax in response to the summons issued under section 131 and produced all the books and records maintained by the assessee-company, as required by the Income-tax Act and the Companies Act, 1956, the petitioner has not committed any offence under section 131 warranting levy of penalty under section 272A(1)(c). The learned representative further submitted that whether there were actually such rough cash books with the assessee, whether the Inspector has mistaken the fair book to the rough cash books, whether he had actually signed in the books or wanted to sign and omitted to sign a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant provisions of the section. Section 272A deals with penalty for failure to answer questions, sign statements, furnish information, return or statements, allow inspection, etc. Section 272A(1) states --- "272A(1) If any person,--- (a) (b) (c) to whom a summons is issued under sub-section (1) of section 131 either to attend to give evidence or produce books of account or other documents at a certain place and time omits to attend or produce books or documents at the place or time; or .............................................................................................................................................. he shall pay, by way of penalty, a sum of ( ...... ) for every day during which the failure continues." Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the authorities in response to the summons issued under section 131 and produced all the books and records maintained by the assessee as required by the Income-tax Act and the Companies Act, 1956. Therefore, the assessee has not committed any offence warranting the levy of penalty under section 272A(1)(c) of the Income-tax Act, 1961. The assessee also tries to cast doubt by making the submission that "whether there was actually such rough cash books in the company, whether the Inspector has mistaken the fair book for a rough book, whether he has actually signed in the book or wanted to sign or omitted to sign finally are all matters to be verified and established before a penalty can be imposed." 47. Here there is a responsible officer of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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