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TMI Blog2016 (9) TMI 859X X X X Extracts X X X X X X X X Extracts X X X X ..... of penalty. So far as intent is concerned, the same is of no consequence in interpreting a fiscal statute, while imposing a penalty for a breach of law. Penalty would visit a party, who has breached the law in fact and not on the basis of supposed intent. The last submission on behalf of the Revenue that the concealment is evident from the fact that the month wise statement of purchase and sales submitted by the Respondent Assessee indicated a negative stock. This in the present facts would be of no consequence, as the record indicates and it is not disputed by the Revenue, that there was unrecorded purchase of 4418 metric tones of goods, which would meet the shortage in stock in the month wise statement of purchase and sales of goods submi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Respondent Assessee filed its return of income for the Assessment Year 1989-90 on 29 December 1989 declaring a total income of ₹ 4.50 lakhs. During the course of assessment proceedings, the Assessing Officer noted discrepancy in the stock available (after purchases) and the sales made therefrom resulting in a negative stock in quantity during some of the months of the previous year relevant to the Assessment Year. The Respondent Assessee, during the assessment proceedings, conceeded to the above fact and voluntarily offered a sum as additional Income of ₹ 40.89 lakhs for tax. Further, the Assessing Officer also noted that the sales for the month of March 1989, was of a magnitude of ₹ 82.69 lakhs, while the statement of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... recorded in the order dated 20 September 1990 of Assessment passed by the Assessing Officer. This resulted in the order dated 17 December 1990 imposing a penalty of 100% of the tax sought to be evaded i.e. ₹ 21.56 lakhs on a concealed income of ₹ 41.07 lakhs. (d) Being aggrieved, the Respondent Assessee carried the order dated 17 December 1990 imposing penalty in appeal to the CIT(A). By an order dated 30 September 1991, the CIT(A) dismissed the Respondent Assessee's appeal on the ground that the Respondent Assessee had itself admitted to the discrepancy resulting in disclosure of additional income during the Assessment proceedings offering the same to tax. In the aforesaid circumstances, the penalty imposed at 100% of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee was to reduce its tax liability by concealing its income. In view of the aforesaid, it is submitted that penalty imposed upon the Respondent Assessee by the Assessing Officer and CIT(A) need not have been interfered with by the Tribunal. 6. We find that the impugned order of the Tribunal on the basis of the record available before it has come to the conclusion that the addition made to the income during the Assessment proceedings was based on mistaken understanding on the part of the RespondentAssessee. It proceeds to hold that if the unrecorded purchases are taken into account, there is no negative stock. Further, there was no suppression of income because total sale proceeds were duly accounted inclusive of unrecorded purchases, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e shortage in stock in the month wise statement of purchase and sales of goods submitted by the Respondent Assessee. 8. In the above view, the impugned order of the Tribunal cannot be found fault with. The finding of fact, as recorded by the Assessing Officer and CIT(A), is not disputed by the Tribunal in the impugned order. It is on consideration of these findings recorded by the lower authorities that the impugned order further takes into account only the unrecorded purchases which were ignored by the lower authorities which establishes that there is no concealment of income. 9. Therefore, the substantial question of law is answered in the negative, i.e. in favour of the Respondent Assessee and against the Appellant Revenue. 10. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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