9911796707
TMI Blog1978 (4) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... ut Feb., 1971. He used to file his Income-tax returns only on estimate basis. For asst. yrs. 1996-67 to 1971-72 he was assessed on the returned estimated figures of Rs. 5,816 Rs. 5,816, Rs. 2,832, Rs. 3,487, Rs. 15,704 and Rs. 2,500 respectively. The returns used to be accepted without any enquiry. 3. For the relevant assessment year he returned on 16th Dec., 1972 on estimate basis a professional income of Rs. 2,500. The assessment was completed on 20th Dec., 1972 itself under the summary method provided in s. 143(1) of IT Act, 1961. Of course, the assessment order was communicated to the assessee only on 30th Jan. 1973. But along with the completion of assessment, the ITO had directed his Inspector to make an investigation about his inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 119 of 68 Rs. 350 EAPs. 117 & 202 of 68 . at Rs.330 per case Rs. 660 EAP. 116 of 68 Rs. 325 EAP. 141 of 68 Rs. 300 EAPs. 133, 168 & 197 of 68 . at Rs. 250 per case Rs. 750 EAP. 132 of 68 Rs. 90 EAP. 162 of 68 Rs. 75 EAP. 134 of 68 Rs. 70 EAP. 191 of 68 Rs. 55 EAPs. 137, 138 & 195 of 68 . at Rs. 50 per case Rs. 150 EAP. 32 of 68 Rs. 50 Total Rs. 18,650 The Superintending Engineer, G & T Circle, Pallim will arrange the payment debiting the expenditure to the works concerned. The fees for EAPs. 35,78,93,100,116,117,141,146,157,168,173,180,185,191,192,197,198,199,200,201,204,215,217,218 & 219 will be transfer debited to the accounts of Executive Engineer, Electrical Division, Pallim. (By Order of the Board) SD/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the Executive Engineer, Electrical Division will be transfer debited to the concerned accounts of Executive Engineer, Electrical Division, Pallim. (By Order of the Board) Sd/- (G. PREMACHANDRAN NAIR), ASSISTANT SECRETARY". This amount is seen credited in the same bank account in Aug., 1971. 4. Then further revised return was furnished on 21st Feb., 1973 where the salient point is only to the effect that this amount of Rs. 25,185 was classified as deferred payments received. This return is furnished after the original assessment order was communicated to the assessee. 5. The ITO issued after these returns were furnished a notice under s. 148 to the assessee. Then with the consent of the assessee, the returns furnished before th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t it was voluntarily done and the omission if any in the original return is only a bonafide one. That is this conduct of the assessee relied on by the assessee to show that it is only a bonafide omission which he sought to correct at the earliest opportunity has no evidentiary value. 7. Kerala State Electricity Board is one of his important clients. It is the admitted position that in making the estimate of income for the purpose of original return the receipt from this Board has not been taken into account. By no stretch of imagination can we think that it is forgetfulness that made him to do so. If he omitted to consider it in making his estimate it can only be with an intention to conceal the income. That it was an accidental or a bona ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the explanation before the IAC where the assessee refers to this amount as arrears of fee and states that further it would be seen that these two amounts were received in respect of work done for the earlier years. This plea is also narrated in the order of the IAC imposing penalty, where he says that the assessee has also argued that he was under a bonafide belief that since this work related to work done in earlier years it was taxable in those years. of course, the IAC has not dealt with this plea. Being also a question of law we permitted the assessee to raise this ground. 9. The assessee follows no method of accounting. In the previous years, he returned on estimate basis and therefore it is not known whether it is on accrual basis o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1971-72. But this finding cannot help the assessee to resist a finding of concealment because the other receipt from the Board for Rs. 6,535 is definitely income which accrued in the relevant accounting year. That accrual and receipt had been omitted to be considered while making the estimate for original return. So definitely there is concealment. 10. But this finding that Rs. 18,650 is not the income of this year is important so far as the quantum of penalty is concerned. The quantum of penalty depends on the amount of income concealed. So we have to find out what is the amount of income concealed. if we were to say that the assessee concealed a certain amount of income it must also be the income of that year. So the question is whether ..... X X X X Extracts X X X X X X X X Extracts X X X X
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