9911796707
TMI Blog1991 (6) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... income is not mechanical or arithmetical difference between the income finally assessed and the income returned by the assessee. I have already pointed out that the concealed income or income in respect of which the assessee furnished inaccurate particulars is Rs. 62,755 and the reduction allowed by the Appellate Assistant Commissioner in respect of the veethapalisa does not in any way affect this concealment In this view of the matter, I hold that the assessee concealed particulars of his income or furnished inaccurate particulars in respect of a sum of Rs. 62,755. The assessee has absolutely no defence for this concealment and it cannot be denied that, but for the search and seizure made, this income would have completely escaped assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted an error and, therefore, the same is not sustainable. A reference in this connection to Division Bench ruling of this court in CIT v. India Sea Foods [1976] 105 ITR 708, is profitable. In that decision, the Division Bench was construing section 271(1)(c) as it stood then. For easy reference, we shall read the section : "271. (1) If the Income-tax Officer or the Appellate Assistant Commissioner, in the course of any proceedings under this Act, is satisfied that any person ... (c) has concealed the particulars of his income or furnished inaccurate particulars of such income, he may direct that such person shall pay by way of penalty, (iii) in the case referred to in clause (c), in addition to any tax payable by him, a sum which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liament having deliberately added those words in the sub-clause, it would be wrong to treat those words as a mere surplusage and the attempt of the court should be to find out the purpose underlying their use in the section. The words 'in respect of which the particulars have been concealed or inaccurate particulars have been furnished' qualify the preceding expression 'the amount of the income'. By using those qualifying words Parliament has made it clear that the quantification of penalty under sub-clause (iii.) is to be made with reference to that amount of the income of the assessee in respect of which there was concealment of particulars or furnishing of inaccurate particulars." (emphasis supplied) In the light of the above decision ..... X X X X Extracts X X X X X X X X Extracts X X X X
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