1983 (6) TMI 56

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..... unt of concealment as penalty. 2. On appeal, the AAC was of the opinion that the ITO had not discharged his onus in proving concealment of income on the part of the assessee. The addition was made on estimate without accepting the explanation given by the assessee. For imposition of penalty it was necessary to see that there had been some concealment. In the present case there was only a difference of opinion. Relying upon the decision of the Supreme Court in the case of CIT vs. Anwar Ali (1970) 76 ITR 696 (SC), he deleted the penalty. The revenue has come up in second appeal before us. 3. We have heard the representatives of the parities at length in this appeal. There can be no doubt that the order of the AAC in this case is extreme .....

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..... he High Court. 4. Next reference was made to Addl. CIT, Madras vs. E. Bhoopathy 1978 CTR (Mad) 690 : (1978) 113 ITR 188 (Mad). In this case there has been an addition to the assessee's income on the basis of increase in his wealth. Consequently penalties were levied by the IAC which on appeal were deleted by the Tribunal. On a reference it was held : "that the Tribunal had not applied its mind properly to the facts of these three assessment years. The Income-tax Officer had only made an estimate on the basis of the turnover of each of the years. He had to make the estimate as the assessee did not produce any accounts for these years. The assessee himself having accepted the estimate of 20 per cent made by the officer and not having be .....

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..... much different from the actual income shown by the assessee. The income-tax return had been fully supported by the Profit Loss Account and Balance Sheet and other statements as directed by the ITO. The return filed by the assessee itself was based on complete statements such as Balance Sheet, Profit Loss A/c etc. and the ascertainment of the assessable income by the ITO had got no basis whatsoever. It was also contended that the assessee had not accepted the figure of income assessed by the ITO and had filed an appeal before the AAC which unfortunately had been misplaced some-where and had not been finally decided so far. Reliance was placed upon two judgements of the Calcutta High Court in CIT, West Bengal vs. Rupabani Theatres Pvt. Lt .....

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