9911796707
TMI Blog1997 (4) TMI 101X X X X Extracts X X X X X X X X Extracts X X X X ..... oulding purposes during the year under appeal and the value of the said crucibles was debited to production account. Similarly, the fuel in the form of furnace oil was debited to production a/c whenever the purchases of the same were made. The assessee-firm had not taken the stock of unused crucibles and furnace oil. 3. During the course of assessment proceedings, the AO enquired about the materials needed for moulding work. The AO noted that in the subsequent year the crucibles, furnace oil, etc. were not purchased in the beginning of the year and that, therefore, the said materials were out of the stock of the year under appeal and that the assessee-firm should have accounted for the closing stock of the raw materials. At this stage, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ort his contention that simply because there was a bona fide consent given at the stage of the assessment that consent along should not be made the sole cause for the levy of penalty in the absence of any positive evidence brought on record by the ITO, that the assessee has fraudulently omitted any such particulars. In the instant case, the assessee has all along been following particular system of maintaining its account on its business of moulding of job work of manufacture of brass parts by moulding debited to crucibles and furnace oil, which are (sic) production account as the assessee is not a dealer to keep stock of the goods dealt in. Whatever is left over from the previous stock of purchases is being used in the next year as per the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he CIT(A). He submitted that the crucibles and furnace oil were not the trading items of the assessee and never in the past these were shown in the closing stock but since during the year under appeal the AO insisted that the assessee ought to have disclosed these crucibles and furnace oil in the closing stock, the assessee in order to purchase peace with the Department readily surrendered the amounts of Rs. 27,000 + Rs. 12,000. He submitted that there was no concealment on the part of the assessee and merely because the assessee surrendered these two amounts the assessee will not be liable to penalty. Similarly, cash credit of Rs. 6,000 in the name of Bechar Gordhan was surrendered out of good faith because the assessee could not procure t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y. It is a quasi-criminal proceedings. There should be conscious concealment. Penalty proceedings are distinct and different from assessment proceedings. The findings in the assessment proceedings are not conclusive but are relevant. The entire materials should be considered afresh by the authorities below before imposing the penalty. Even if the addition of Expln. to s. 271(1)(c) conscious concealment is necessary. The Explanation provides only a rule of evidence raising rebutable presumption in certain circumstances. No substantive right is created or annulled thereof. The substantive law relating to levy of penalty is preserved. Taking into account these facts and circumstances of the case we are of the view that there is no conscious co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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