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TMI Blog2014 (8) TMI 1248X X X X Extracts X X X X X X X X Extracts X X X X ..... o be undertaken by an AO in the proceedings u/s 271(1)(c) is somewhat typical. For all practical purposes, he has to follow a method different from the one, which he adopts while passing the order of assessment. The very fact that a return submitted by the assessee is required to be processed by an Assessing Officer discloses that the facts and figures mentioned in the return are subject to scrutiny and verification. Many a time, the understanding of an assessee about a particular issue may not be correct and the finding of the Assessing Authority on such assessment may result in either adding some additional items of income or disallowing certain deductions. The mere fact that the return filed by an assessee was found to be not acceptable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Department. That, however, was treated almost as a total surrender by the respondent. The readiness on the part of the assessee to accept the facts and figures noticed in the survey, with the objective of avoiding further complication in the matter or to purchase peace, cannot be treated as unconditional acceptance of the allegation or accusation against him much less does it basis for levy of penalty. If every variation that is noticed in the course of assessment is to be treated as concealment, the very computation of the income tax and the exercise to be undertaken thereunder, undergoes substantial change, which the Parliament may not have intended. At any rate, the Commissioner was convinced on the facts that there was no act on the pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Assessing Officer initiated proceedings under Section 271(1)(c) of the Act' against the respondent in relation to the two items that are said to have been discovered during the course of survey. The respondent was required to show cause as to why penalty be not levied. In the explanation submitted by it, the respondent stated that it did not have any intention to conceal any source of income and that it accepted the two items pointed out in the course of survey, only with a view to purchase peace. Another contention advanced was that the nature of business itself is such that it is not certain or consistent and a substantial part of it was dealt with by the G.P.A., and instead of making an effort to convince the Assessing Officer, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e cash; and in spite of that, the facts and figures mentioned by the Department were accepted only with a view to buy peace. He contends that the discrepancy, be it in the stock, or in the cash, was only on the basis of projections of certain figures and it was not a case where the stock or cash was found or traced in its physical form. He contends that though it is not necessary that the concealment must be in the form of actual stock or cash, the fact that it is the result of projection would have its own impact in the context of levying penalty. Learned counsel further submits that the Commissioner as well as the Tribunal have taken relevant precedents into account and have arrived at the correct conclusion. 7. In the course of processin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Section 271(1)(c) of the Act is somewhat typical. For all practical purposes, he has to follow a method different from the one, which he adopts while passing the order of assessment. The very fact that a return submitted by the assessee is required to be processed by an Assessing Officer discloses that the facts and figures mentioned in the return are subject to scrutiny and verification. Many a time, the understanding of an assessee about a particular issue may not be correct and the finding of the Assessing Authority on such assessment may result in either adding some additional items of income or disallowing certain deductions. 10. The mere fact that the return filed by an assessee was found to be not acceptable and certain additio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsideration. It is open to the revenue to rely on all the circumstances pointing to that conclusion. What these several circumstances can be is difficult to enumerate and indeed, from the nature of the enquiry, it is almost impossible to do so. In the end, they must be such as can lead to the firm conclusion that the assessee has concealed the particulars of his income or has deliberately furnished inaccurate particulars. It is needless to reiterate that in a penalty proceeding the burden remains on the revenue of proving the existence of material leading to that conclusion. 12. The discussion that was undertaken by the Assessing Authority in the instant case proceeded on the line that once the respondent did not dispute the facts and figur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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