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TMI Blog2007 (8) TMI 740X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessing Officer would appear to have abandoned his earlier view that the monies were received from fictitious persons and seems to have settled for less strong expressions. It is, therefore, somewhat difficult to assert that the Assessing Officer did reach the satisfaction in the course of the assessment proceedings that the assessee concealed its income or furnished inaccurate particulars thereof. The last line in the assessment order to the effect that the penalty proceedings u/s 271(1)(c) have been initiated separately does not also amount to recording of the requisite satisfaction. In our opinion, the case falls within the ratio of the judgments of the Hon ble Delhi High Court in CIT v. Ram Commercial Enterprises Ltd. [ 1998 (10) TM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... attracted since the assessee has adduced whatever evidence was in its possession which has not been found to be false unsubstantiated. All that, can be said is that the income-tax authorities were not satisfied with such evidence. That does not amount to proof that the assessee concealed its income or furnished inaccurate particulars thereof. We accordingly accept the submissions made on behalf of the assessee and cancel the penalty imposed on it. The appeal is allowed with no order as to costs. - R.V. EASWAR, VICE PRESIDENT AND K.G. BANSAL ACCOUNTANT MEMBER For the Petitioner : Salil Kapoor For the Respondent : L.M. Pandey ORDER R.V. EASWAR, VICE PRESIDENT. This appeal by the assessee relates to the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee had filed an appeal to the Hon ble Delhi High Court under section 260A against the order of the Tribunal. The Assessing Officer overruled the assessee s objection and held that the cash credits were non-genuine and by making a claim that they were genuine the assessee had concealed its income as also furnished inaccurate particulars thereof. He accordingly imposed the minimum penalty under section 271(1)(c) which was confirmed by the CIT (Appeals), Hence the present appeal. 4. The first contention raised before us on behalf of the assessee was that the Assessing Officer has not recorded any satisfaction in the assessment order to the effect that the assessee concealed its income or furnished inaccurate particulars thereof and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clear that the Assessing Officer can be said to have reached the requisite satisfaction. On merits, he submitted that the assessee never produced the details in support of the share application monies before the income-tax authorities and its conduct was thus contumacious for which penalty was imposable. He pointed out that the addition has been confirmed by the Tribunal which is a strong point in support of the levy of penalty. He further pointed out that the evidence adduced by the assessee in support of the receipt of share application monies does not stand the test of the normal course of human conduct and probabilities and the assessee was trying to pass off its own monies in the guise of share application monies from agriculturists wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of expressions, namely, fictitious on the one hand and doubtful and not proved on the other hand. Thus, while concluding his reasoning and making the addition the Assessing Officer would appear to have abandoned his earlier view that the monies were received from fictitious persons and seems to have settled for less strong expressions. It is, therefore, somewhat difficult to assert that the Assessing Officer did reach the satisfaction in the course of the assessment proceedings that the assessee concealed its income or furnished inaccurate particulars thereof. The last line in the assessment order to the effect that the penalty proceedings under section 271(1)(c) have been initiated separately does not also amount to recording of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t appear to have been highlighted. If is well settled that the findings rendered in the assessment proceedings though they constitute good evidence do not constitute conclusive evidence in penalty proceedings. During penalty proceedings, there has to be reappraisal of the very same material on the basis of which the addition was made and if further material is adduced by the assessee in the course of the penalty proceedings, it is all the more necessary that such further material should also be examined in an attempt to ascertain whether the assessee concealed his income or furnished inaccurate particulars thereof. In the present case, the evidence adduced before the CIT (Appeals) in appeal against the assessment order has not been examined ..... X X X X Extracts X X X X X X X X Extracts X X X X
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