9911796707
TMI Blog1976 (3) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... e for the assessment year 1970-71, which the assessee knew or had reasons to believe to be untrue. The assessee was asked to show cause why penalty should not be imposed upon the assessee under the Income-tax Act, 1961. It appeared that the petitioner had filed its estimate of advance tax under section 212 of the Income-tax Act, 1961, on the 9th June, 1969. The income according to the said estimate was shown as Rs. 10,00,000. On 6th December, 1969, the assessee filed a revised estimate of advance tax and the income estimated was Rs. 7,00,000. The petitioner filed return for the assessment year 1970-71 on 28th September, 1970, showing an income of Rs. 9,79,411. On 23rd August, 1972, the petitioner filed revised return showing an income of Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pital receipts but the revenue proceeded on the basis that these were revenue receipts and as such taxable. There were certain other expenses which were disallowed amounting to Rs. 68,319 and certain municipal taxes were disallowed amounting to Rs. 12,914. Therefore, according to the petitioner, the petitioner did returned the correct estimate. The petitioner, according to it, filed estimate excluding items which the petitioner was contending were not taxable as capital receipts. In that view, the petitioner contended that there were no materials as such before the Income-tax Officer for his satisfaction in the course of assessment that the assessee had furnished an estimate knowing it to be false or had reasons to believe the estimate to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of the circumstances mentioned in different clauses of section 273. The satisfaction must be in the course of assessment proceeding but the satisfaction that is required under section 273 is tentative and prima facie satisfaction. For the purpose of issuance of the notice it is sufficient if there was tentative and prima facie satisfaction which would justify embarking upon an enquiry as to whether the assessee was guilty of the offences mentioned in different clauses of section 273. In the background of the facts and circumstances mentioned before, I am unable to accept the contention that there were no materials at all even to embark upon an enquiry as to whether the assessee knowing it to be false or had reason to believe that the es ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dge found that there was no concealment of any particulars of income and as such no basis for initiation of proceedings for concealment of income. Whether there are materials or not depend on the facts and circumstances of each case. In the instant case, in the years prior to the relevant assessment year the Appellate Assistant Commissioner had held that receipts were revenue receipts and in the background of the facts that the auditors of the assessee had advised the assessee that these were revenue receipts, in my opinion, it cannot be said that there were no materials for tentative satisfaction sufficient enough to entitle the Income-tax Officer to embark upon an enquiry whether the petitioner was guilty of the offence mentioned in claus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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