2007 (4) TMI 223

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..... come-tax (Appeals) in cancelling the penalty imposed by the Assessing Officer under section 271(1)(c) of the Act? 2. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in law in holding that from the details of stock collected by the Department and as given by the assessee to the bank, it is possible to hold a view that many of the items so shown had no such intrinsic value? 3. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in law in holding that it is also a fact that it is a common phenomena that the asses sees show higher value of the stock in their possession with a view to obtain higher loans. This fact cannot be re .....

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..... se of assessment proceedings relating to the assessment year 1983-84, the Assessing Officer on an enquiry from the bank found that the stock statement submitted by the assessee was much higher than the stock statement submitted to the Income-tax Officer. On being called upon to explain the discrepancy in the stock, the assessee by its letter dated March 24, 1986, replied that there was no discrepancy in the stock, because the statement submitted to the bank on only estimated basis and not based on the books maintained by the assessee. However, at the instance of the Assessing Officer the assessee surrendered a sum of Rs. 5.50 lakhs on March 31, 1986, in view of the amnesty scheme and the circular of the Central Board of Direct Taxes dated F .....

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..... f the matter, we allow this application on the following questions of law: "1. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in upholding the order of the Commissioner of Income-tax (Appeals) in cancelling the penalty imposed by the Assessing Officer under section 271(1)(c) of the Act? 2. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in law in holding that the Central Board of Direct Taxes Circular No. 451 dated February 17, 1986, is applicable to the facts of this case? 3. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in law in holding that till the a .....

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