9911796707
TMI Blog2006 (8) TMI 442X X X X Extracts X X X X X X X X Extracts X X X X ..... n knowledge. These types of additions and disallowances will not make out a case of concealment or furnishing of inaccurate particulars. If the view of the Revenue is to be accepted, every addition or disallowance made in the course of an assessment would invariably result in imposing penalty which is nowhere implied as the intention of law. The other items of additions made by the Assessing Officer are by way of disallowance of various expenditures. Here also the assessee has furnished the details. All the expenses have been accounted. Certain disallowance were made. The assessee might not have agitated those additions. But that does not mean that the disallowances reflected concealment or furnishing of inaccurate particulars. Thus, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 74,600 3. In the light of the additions made in the course of assessment proceedings, the Assessing Officer initiated penalty proceedings under section 271(1)( c ) on the ground that the assessee has filed inaccurate particulars of her income. In the course of penalty proceedings the assessee explained before the Assessing Officer that she had furnished all the particulars regarding her earnings and expenditure and there was no concealment, whatsoever. The assessee also explained that the amounts received from film producers were shown as advances for the reason that the shooting of those films were not commenced. When the assessee had not accomplished her contract work she thought that it was not proper for her to treat such r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oncerned. He found that even the Assessing Officer has admitted for the impugned assessment year 1998-99 that the assessee was following mercantile system of accounting. In mercantile system of accounting, the assessee was right in proposing to treat a part of the receipts as advances for the reason that certain films were not even commenced shooting. The assessee could consider the receipts as income only when her contractual liability was accomplished. After considering the other additions, the CIT(A) held that they were disallowances alone which do not have any element of concealment and, therefore, there is no justification to levy penalty in the matter. The penalty was accordingly deleted. 6. The Revenue is aggrieved and, therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shed by the assessee regarding the professional receipts she had earned during the previous year. There is no dispute on the question of receipts. The assessee has accounted the receipts in a proper manner and they were all accepted by the Assessing Officer. The only question remained was whether the entire receipts were to be treated as the income of the assessee for the impugned assessment year or a portion of the receipts should be treated as advances to be treated as income for future assessment years. As the assessee was following mercantile system of accounting and her contractual obligations in respect of certain assignments were not accomplished during the relevant previous year, the assessee bona fidely adopted a view that the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ditions or by way of disallowances. In certain cases, the assessee himself may come forward and offer some additional amount for assessment on the basis of the impression gathered at the time of assessment proceedings. These are all matters of common knowledge. These types of additions and disallowances will not make out a case of concealment or furnishing of inaccurate particulars. If the view of the Revenue is to be accepted, every addition or disallowance made in the course of an assessment would invariably result in imposing penalty which is nowhere implied as the intention of law. The other items of additions made by the Assessing Officer are by way of disallowance of various expenditures. Here also the assessee has furnished the detai ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
