9911796707
TMI Blog1981 (1) TMI 142X X X X Extracts X X X X X X X X Extracts X X X X ..... the ld. Authorised Rep. of the parties unto these appeals and the impugned order of AAC being also common consolidated one in respect of all the appeals, as of necessity and for the sake of convenience, we are disposing of all these appeals at our level also, by this common consolidated order. 3. We have heard the ld. Deptl. Rep. at length as also Shri R.K. Gulati, the ld. counsel for the assessee. No paper-book has been placed on our file by any party to the appeals. We have perused the orders of the lower authorities very carefully as also we have given our due and careful consideration to the submissions made before us. The ld. Deptl. Rep. having supported the orders of the ITO and contending that on the stated facts of the assessee's ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded and for ready reference, we reproduce the penalty order for the asst. yr. 1964-65 in verbatim as under: "In response to show cause notice for imposition of penalty under s. 271(1)(c) the assessee has filed his written reply 29th Dec., 1978. In the reply the assessee has not given any valid reason as to why penalty under s. 271(1)(c) should not be levied. The assessee has voluntarily disclosed an amount of Rs. 25,000 and filed the return for the above assessment years including his previously assessed income also. Notice under s. 148 was issued on 23rd March, 1973 to initiate the necessary proceedings. The assessee could not prove that the income of Rs. 25,000 which was voluntarily disclosed was derived during the year under considerat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e filing of the returns by the assessee, a concession extended by the Revenue to the assessee, at the assessment stage, hence it cannot be said and held that the returns filed by the assessee were in compliance to notice under s. 148 of the Act, since notice under s. 148 of the Act pre-supposes that some income has escaped assessment and under sub-s.(2) of s. 148 of the Act, for issuing notice under s. 148 of the Act, the ITO has to record his reasons for issuing notice under s. 148 of the Act. Whereas on the facts of the assessee's case in appeal before us, the assessee has filed the returns of income voluntarily, of course, after the original assessments were completed and what the Department has done is to issue notices under s. 148 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alleged by the ITO in the penalty order, could not prove that the disclosed income of Rs. 25,000 for all the assessment years under appeal was derived by the assessee during the relevant years, how could the ITO take the amount of Rs. 25,000 in each of the assessment years under appeal as the concealed income of the assessee. If the assessee has not derived any income in the years under consideration, the said income could not have been accepted and subjected to assessment and charge of tax. There is no reason to infer that an assessee who has not derived any income but has declared that income in the return of income filed by him is his concealed income. The word "conceal" denotes' to hide completely or carefully', 'to keep secret', ' to d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee, the Department must have before it, before levying penalty, cogent material or evidence from which it could be inferred that the assessee has consciously concealed the particulars of his income or had deliberately furnished inaccurate particulars in respect of the same and that the disputed amount is a revenue receipt. No doubt, the original assessment proceedings for computing the tax may be a good item of evidence in the penalty proceedings; but penalty cannot be levied solely on the basis of the reasons given in the original order of assessment". 8. On the facts of the assessee's cases, there is no material vis-a-vis the penalty orders to warrant or justify the imposition of penalty on the assessee, we hold so, with the r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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