9911796707
TMI Blog2014 (3) TMI 762X X X X Extracts X X X X X X X X Extracts X X X X ..... any manner by the assessee - the distinguishing aspect which is sought to be made, has no distinction at all - in the absence of dislodging the finding of the Tribunal to the effect that there was a deliberate concealment of the refundable empty bottle deposits by not disclosing the same either in profit and loss account or in the balance sheet, the levy of penalty as provided under Section 271(c) of the Act on the facts of the case, cannot be found fault with – Decided against Assessee. Penalty for unreconciled difference in balance sheet – Held that:- The differences in the balance sheet can be the result of various wrong entries - The AO himself noticed some wrong entries like the understatement of purchases and understatement of sun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oncealment of refundable empty bottle deposit and the Tribunal's findings are vitiated by non- consideration of the relevant factors? 2) Whether on the facts and in the circumstances of the case, the Tribunal is justified in upholding the maximum penalty arising on account of unreconciled difference in the balance sheet and the Tribunal's findings are vitiated by non- consideration of the relevant factors? The assessee is carrying on the business of liquor. For the assessment year 1982-83, the assessee was levied with penalty under Section 271(2) of the Income-tax Act, 1961 (for short the Act ) for concealment of income amounting to Rs.8,29,966/- on three counts as mentioned below: a) Refundable empty bott ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Distilling Industries Ltd. vs. The Commissioner of Income Tax, Simla [1959] 35 ITR 519 (SC) and would point out that the said judgment has been distinguished in another judgment reported in United Breweries Ltd. v. State of Andhra Pradesh [1997] 3 Supreme Court Cases 530. He also contends that the Tribunal failed to deal with the aspect of penalty arising on account of unreconciled difference in the balance sheet. On the other hand, the learned Senior Counsel for the Department supports the order of the Tribunal. From a perusal of the order of the Tribunal, we find that the Tribunal recorded a finding that the assessee did not disclose the income on account of refundable empty bottle deposit and servicing and packing charges either i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... brought into the profit and loss account. It is not the contention of the learned counsel for the assessee that the amount received on account of refundable empty bottle deposit is not a trading receipt. As a matter of fact, the assessee himself for the assessment years 1981-82 and 1983- 84 treated the same as trading receipt. In that view of the matter, the distinguishing aspect which is sought to be made, has no distinction at all. Further, in the absence of dislodging the finding of the Tribunal to the effect that there was a deliberate concealment of the refundable empty bottle deposits by not disclosing the same either in profit and loss account or in the balance sheet, the levy of penalty as provided under Section 271(c) of the Act o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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