9911796707
TMI Blog1978 (1) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 had returned and income of Rs. 8,652 but the income finally assessed by the Tribunal was Rs. 16,450. For asst. yr. 1971-72, the income shown was Rs. 12,240 but was assessed at Rs. 21,900. The ITO started penalty proceedings but the assessee did not show cause in response to the notices served on it. The ITO, in both cases, held that the assessee had furnished inaccurate particular of its income. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was invited to the order of the Tribunal for asst. yr. 1970-71 (page 4 of the compilation) wherein the Tribunal observed that the assessee maintained records showing mileage, fare receipts, expenses incurred etc. It is true that the ITO had invoked proviso to s. 145(1) of the IT Act and estimated the income, but for this reason alone, no inference of concealment of income or furnishing of inaccura ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the material before the ITO, no fraud or gross or wilful neglect could be attributed to the assessee. In CIT, vs. K.L. Mangal Sain (1977 107 ITR 598 (All) the Allahabad High Court confirmed the observation of the Tribunal that in a case where book version was rejected and profit was determined by applying a flat rate, additions in the assessment may be justified but it does not follow that there ..... X X X X Extracts X X X X X X X X Extracts X X X X
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