1991 (6) TMI 21

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..... consideration : " Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in cancelling the penalty of Rs. 83,278 levied under section 271(1)(c) for the assessment year 1976-77 ignoring the fact that the assessee had not only admitted the concealment of income by his letter dated March 28, 1979, but his books of account also showed that the assessee ha .....

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..... fficer found the books of account not dependable and the income stated in the revised returns unacceptable. The Income-tax Officer had before him the details of the assessee's assets and liabilities as on March 31, 1978, and the expenditure incurred by the assessee, as stated by the assessee. From these, ultimately, on a consideration of several factors, the total income for the years 1972-73 to 1 .....

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..... . 6,00,000 for the years 1972-73 to 1977-78, and the assessment order was the result of the agreement with the Revenue and, therefore, penalty ought not to have been levied. The alleged agreement was held not proved by the Commissioner (Appeals). The Appellate Tribunal, however, held: "We find that the assessment was based only on the letter of settlement dated March 28, 1979. The assessment ord .....

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..... tter is to be ignored, then we find that there was no basis for the assessment order and no evidence has been brought on record to indicate that any part of the taxable income had been concealed by the assessee. Since penalty cannot be imposed without regard to the letter of the assessee and it cannot also be imposed on the basis of the letter of the assessee, the imposition of penalty is devoid o .....

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..... e return filed by the assessee is a glaring fact, in the instant case. It is not possible to infer any agreement by the Revenue, either in clear terms or by necessary implication, to act on the basis of the assessee's letter. The assessee has to thank himself that the Incometax Officer levied the minimum penalty only. The question is, therefore, answered in the negative and in favour of the Reve .....

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