9911796707
TMI Blog2007 (10) TMI 334X X X X Extracts X X X X X X X X Extracts X X X X ..... e must be concealment or suppression of income on the part of the assessee to avoid payment of tax thereon. In absence of a positive finding in this regard, the AO was not justified in imposing the penalty. The first appellate order is thus upheld. The ground as well as appeal is thus dismissed. - I. C. Sudhir Judicial Member And B. P. Jain Accountant Member For the Appellant : J. L. Basumatary For the Respondent : Vijay Goyal ORDER I.C. Sudhir, Judicial Member. - The Revenue has questioned first appellate order deleting penalty of Rs. 3,53,875 imposed by Assessing Officer under section 153BFA(2) on the addition of Rs. 5,04,099 finally sustained by the Tribunal. 2. We have heard and considered the arguments adva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the assessee and such a minor error in estimation cannot be ruled out. The assessee has not acted deliberately in defiance of law or was not guilty of conduct contumacious or dishonest, or has not acted in conscious disregard of its obligation, hence penalty cannot be levied. It was contended further that it is not the intention of the legislature in enacting section 158BFA(2) to impose penalty on every finally sustained addition in undisclosed income. The penalty provisions under section 158BFA(2) are in pari materia to the provisions of section 271(1)(c) of the Act and therefore, what is applicable for levy of penalty under section 271(1)(c) of the Act in principle applies to the penalty under section 158BFA(2). Reliance has been pl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8. The Assessing Officer has failed to appreciate that the surcharge levied by Assessing Officer in the block assessment was deleted and upheld by the appellate authorities. We further noted that the finally sustained addition consists of the addition of Rs. 2 lakhs on account of stock; Rs. 57,377 on account of gold jewellery and Rs. 2,02,284 on account of debtors. 9. The addition of Rs. 2 lakhs on account of stock is based on estimation. The addition on account of jewellery at Rs. 57,377 is also based on estimation. Similar is the position with the addition on account of debtors at Rs. 2,02,284. The assessee in his block return had declared the undisclosed trade debtors at Rs. 96,71,194. The Assessing Officer accepted the total tra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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