9911796707
TMI Blog1975 (9) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... unal has accordingly stated the case. The year of assessment is 1960-61, corresponding to the accounting period ending with March 31, 1960. The assessee was working as the sole distributor of cloth and yarn manufactured by Messrs. Orissa Textile Mills Ltd., in respect of most of the districts of the State of Orissa. For the assessment year the assessee filed a return on November 17, 1960, disclosing total income of Rs. 80,738. While examining the books of account, the Income-tax Officer noticed discrepancies in the sale bills. The assessee thereupon filed a revised return showing income of Rs. 2,33,128. The Income-tax Officer, on further scrutiny of accounts, included a sum of Rs. 4,98,400 as income from other sources. A proceeding under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e liable for punishment ........." Having come to this conclusion, the Tribunal further stated : "......However, since the assessee has disclosed a higher income in the revised return, for the purpose of computation of the quantum of penalty, the total income disclosed in the revised return will be the basis. We have sustained an addition of Rs. 54,377 which would go to show that the revised return did not contain the full disclosure of the assessee's income. On this score also penalty is exigible. In view of the fact that the assessee repented for its contumacious act as well as without giving avoidable difficulties to the Income-tax Officer came forward with a higher amount of income, a lenient view should be taken while imposing pena ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Gujarat High Court examined a similar question. The learned judges rightly pointed out : " The Tribunal had, therefore, no occasion to find out and to address itself to the important question, whether this revised return was made by the assessee of his volition before concealment was detected in the course of the assessment proceedings." Where the revised return is the outcome of voluntary action on the part of the assessee before any part of the suppression is detected, it may be possible to contend that there has been a bona fide mistake and the materials on record and the conduct of the assessee together may justify a conclusion of fact that the burden which lay on the assessee in view of the Explanation attached to section ..... X X X X Extracts X X X X X X X X Extracts X X X X
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