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TMI Blog1987 (6) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee on the one hand and the CIT and the IAC on the other hand. The terms arrived at between the parties are incorporated in the WTO's letter dt. 2nd Aug., 1977. In pursuance to this agreement the assessee filed the returns showing Rs. 5 lakh for the asst. yr. 1971-72 as share of fixed deposit in M/s Bhattacharjee Co. plus the value of other assets and Rs. 2,40,000 for the asst. yr. 1972-73 as share of fixed deposit plus the value of the asset. The assessee, however, claimed relief under s. 5(1A) of the Act. The WTO did not grant the exemption under s. 5(1A) of the Act and completed the assessments on net wealth of Rs. 5,02,000 and Rs. 2,41,000 for these two assessment years. The assessee, however, appealed to the AAC in respect of re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same date, the assessee agreed to submit the returns for the amounts stated therein and also not to prefer any appeal. He further contended that the department undertook not to initiate penalty proceedings if these two conditions were fulfilled by the assessee. He contended that the assessee violated the terms of this agreement by preferring appeals and as such the department was absolved from its part of the agreement agreeing not to initiate penalty proceedings. He also contended that the AAC and the CIT(A) both were not justified in holding that penalties should not have been imposed while making the fresh assessments after an order of the AAC when such proceedings were not initiated in the assessments which were set aside on appeals ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . yrs. 1971-72 and 1972-73 under s. 17 of WT Act, 1957. Please refer to the above. The above assessments have been reopened on the basis of discussion held between you and CIT and IAC. There it was agreed by you to get the assessment completed on the net wealth as below : 1971-72 : Rs. 5,00,000 as share of fixed deposit and M/s. Bhattachajee Co. plus the value of other assets. 1972-73: Rs. 2,40,000 as share of fixed deposit plus the value of other assets. You are therefore requested to file the return on the aforesaid basis. It is clarified that on your filing the return no penalty proceedings will be initiated ". 5. Nowhere in the above letter it has been stated that the assessee undertook not to file any appeal against the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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