2005 (7) TMI 47

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..... t is a clear case of concealment. If search would not have been made and loose purchase had not been detected, the income would have escaped assessment. In our opinion, on the facts of the case, the assessee deliberately concealed the sales of cloth, therefore, was liable for penalty. For the reasons stated, penalty levied by the first appellate authority is restored
Judge(s) : R. K. AGRAWAL., RAJES KUMAR. JUDGMENT The judgment of the court was delivered by Rajes Kumar J.-The Income-tax Appellate Tribunal has referred the following question of law under section 256(2) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), for the assessment year 1981-82 for opinion to this court: "1. Whether the Tribunal was justified i .....

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..... es respectively. The aforesaid addition was confirmed by the Commissioner of Income-tax (Appeals). The Tribunal, however, in second appeal deleted the addition of Rs. 31,659 and has confirmed the addition of Rs. 90,411. The assessing authority levied penalty under section 271(1)(c) at Rs. 58,944 being minimum penalty imposable. The Commissioner of Income-tax (Appeals) allowed the appeal in part and deleted the penalty leviable on the amount of Rs. 31,659 which was deleted by the Tribunal but has sustained the penalty at Rs. 37,320 on the amount of Rs. 90,411 treating it as a concealed income. The assessee filed appeal before the Tribunal. The Tribunal allowed the appeal and deleted the entire penalty. The Tribunal held as follows: "We hav .....

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..... ble in the case before us and, therefore, they have not been individually discussed and distinguished. In the end, the appeal is allowed." Heard Sri A.N. Mahajan, learned standing counsel appearing on behalf of the Revenue. No one appears on behalf of the assessee. Learned standing counsel submitted that the present is a clear case of concealment. He submitted that the entries in loose purchase have been admitted relating to the concealed sales of the assessee's business and in the revised return, profit out of the said sales has been disclosed. He submitted that the revised return was not voluntary and in good faith and when at the time of search, loose purchase were found, in which the entries relating to the sales were recorded, which .....

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