9911796707
TMI Blog2022 (2) TMI 926X X X X Extracts X X X X X X X X Extracts X X X X ..... ot file any reply to substantiate their stand that there was no concealment of income. Therefore, the assessing officer imposed penalties on the appellants, which were also confirmed by the appellate authorities As the appellants had disclosed the income, after detection by the department and as per the terms of settlement, the assessing officer initiated the penalty proceedings, to which, the appellants / assesses did not submit any explanation to the effect that there was no concealment of income or furnishing of inaccurate particulars of such income, which culminated in imposition of penalties under section 271(1)(c), we do not find any infirmity or illegality in initiating the penalty proceedings and the consequential orders passed b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transactions of purchases and sales of safety matches among the assessee group concerns and each member of the group was found to be granting certain rebates to some sister concerns at the end of the year and to be receiving similar rebate from them. These rebates mostly kept hidden in the respective accounts of purchases and sales. After examining the oral and documentary evidence, it was found by the assessing officer that such rebates represented a systematic and ingenious process of reducing the profits by fictitious claim and hence, the rebates debited by the concerned assesses in their accounts were disallowed as not related to business. 3.2 Aggrieved by the orders of the assessment, the assesses went on appeals, which were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e penalties and dismissed the appeals. Aggrieved by the same, the appellants went on further appeals before the Tribunal, which also dismissed the appeals filed by the appellant. Therefore, the present tax case appeals by the appellants / assesses. 4.Heard both sides and perused the materials available on record. 5.It appears from the facts stated above that the assessing officer upon verification of the materials placed, had concluded that the rebates claimed by the appellants /assesses for the assessment years in question, were clearly the profits diverted by the fictitious claims and hence, the same were disallowed. In the second round of litigation as well, the assessing officer took the same stand and passed the reassessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ingenious and intricate adjustments in accounts, through kite flying entries of rebates given and received, the 14 Members of the group kept on playing the game of inter-diversions of profits for 6 to 7 years. The Government for almost 15 to 20 years had not collected the concerned taxes because the matters pertaining to Assessment Years 1975-76 to 1979-80 ultimately reached stage of settlement only in 1994. The appellant group never came for any settlement voluntarily. It was only on the directions of the ITAT, the Department and the Assessee had come to the discussion table for the eventual settlements. When the 14 concerns belonged to the same group, price fluctuation in the market would not warrant passing on rebates by one concern to a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... initiated the penalty proceedings by issuing show cause notices, to which, the appellants/assesses did not file any reply to substantiate their stand that there was no concealment of income. Therefore, the assessing officer imposed penalties on the appellants, which were also confirmed by the appellate authorities. 7.At this juncture, it is apt to refer to a decision of the Supreme Court in Mak Data (P) Ltd. v. CIT [(2013) 38 taxmann.com 448/ 358 ITR 593 (SC) , wherein, it was held as under: 7. The AO, in our view, shall not be carried away by the plea of the assessee like voluntary disclosure , buy peace , avoid litigation , amicable settlement , etc. to explain away its conduct. The question is whether the assessee has off ..... X X X X Extracts X X X X X X X X Extracts X X X X
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