9911796707
TMI Blog1982 (3) TMI 115X X X X Extracts X X X X X X X X Extracts X X X X ..... s. 11,71,550 to Rs. 17,666." 2. It will be of immense help in case the matter pertaining to quantum of the assessment which travelled up to the stage of the Tribunal, is briefly discussed. The assessee derived income from running of a sugar mill and of a distillery. In the course of the assessment proceedings, the ITO made the following four additions : "i. Income from sale of sugar of the sugar unit amounting to Rs. 11,45,229 which was included in the sum of Rs. 14,56,202 shown as liability in the balance-sheet of the sugar unit under the head 'Contingent liabilities' ; ii. Income from residential quarters of the assessee amounting to Rs. 17,666 which was included in the sum of Rs. 34,341 shown as liability in the balance-sheet of the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed a penalty of Rs. 11,71,550 on account of the four additions vide order dated 18-3-1980, the assessee disputed the matter before the Commissioner (Appeals) who vide his order dated 28-8-1980 sustained the penalty only of Rs. 17,666, i.e., on account of addition in respect of income from residential unit which was offered by the assessee for tax in the form of revised return though as a consequence of enquiry made by the IAC (Assessment) in that regard in the assessment proceedings. The Commissioner (Appeals) while reducing the penalty regarding addition of Rs. 11,45,229, observed that the revenue has no case in respect of the said addition for penalty purpose as the same has been deleted by the Tribunal. In respect of additions of Rs. 5,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... letion of addition of Rs. 11,45,229 by the Tribunal and also submitted that even revenue's reference application under section 256(1) of the Act, in that regard, has been rejected. 5. The learned counsel for the assessee, Shri. K.S. Suri, on the other hand, besides relying on the order of the Commissioner (Appeals) not only drew support in respect of penalty deleted for the three amounts of Rs. 11,45,229, Rs. 5,051 and Rs. 3,604 but even in respect of addition of Rs. 17,666 for which penalty was sustained on the basis of legal grounds raised by the learned counsel before the Commissioner (Appeals) that penalty proceedings under section 271(1)(c) were initiated 'for furnishing wrong particulars of income' by the assessing authority whereas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee has neither come in appeal nor in cross-objection and as a respondent its rights are limited. She also submitted that it is trite law that legal issue can be raised at any stage of hearing but the issue sought to be raised by the learned counsel for the assessee is not one which will not require going into the facts such as looking at the notice, etc., and in case certain facts are required to be seen, the submission of the learned counsel should not carry the assessee's case any further. She submitted that the Tribunal has held over and again that the charge can be changed. She submitted that satisfaction is during the course of assessment proceedings and once the lapse, if any, has been made while issuing the notice, as it car ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he order of the Commissioner (Appeals) which reduced the penalty of Rs. 11,71,550 to Rs. 17,666. Reliance of the learned counsel for the assessee on disputing the finding of the Commissioner (Appeals) on legal issue that when penalty proceedings were initiated were for furnishing of wrong particulars, whereas when the penalty was levied, it was for concealment, rejected by the Commissioner (Appeals) in paras 4 and 5 of his order, is misplaced before us in respect of levy of penalty amounting to Rs. 17,666 confirmed by the Commissioner (Appeals) because, as observed by us above, the right granted to the respondent under rule 27 of the Income-tax (Appellate Tribunal) Rules is limited. All that the respondent can do is to support the order of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
