1982 (1) TMI 101

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..... see valued the closing stock of Deshi Khand @ Rs. 300 per quintal, the ITO valued the same at the rate of Rs. 400 per quintal. This is how, an addition of Rs. 9,000 was made and penalty proceedings were initiated for having furnished inaccurate particulars of income, as the closing stock of Deshi Khand was purportedly under-valued by the assessee. The assessee failed to persuade in the penalty pro .....

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..... of January. The sale rates constantly have gone down in the month of February and March. The submission of the assessee is that considering the fluctuations of the sale rates, the closing stock of Deshi Khand had been valued @ Rs. 300 per quintal. The submission of Shri Singhal is that the assessee may be wrong in valuing the closing stock on the rate as obtained in the month of February, and Marc .....

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..... self cannot be a good reason to impose penalty or infer that the rate of Rs. 300 per quintal having been taken by the assessee, was mala fide. For the reasons, we hold that it is not a fit case to sustain the penalty. The penalty is therefore, cancelled. Shri Singhal also raised legal objections that the charge as set out in the assessment order was altered by the ITO in the penalty order and that .....

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