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TMI Blog1991 (7) TMI 132X X X X Extracts X X X X X X X X Extracts X X X X ..... ent was on the basis of a survey conducted by the said department on the business premises of the assessee on 22-5-1980. In the course of the said survey, the State Excise Taxation Deptt. found out that the total sales of the assessee were to the tune of Rs. 8,94.269 as against the figure of Rs. 6,68,384 declared by the assessee. The unaccounted sales, detected by the said sales authority were to the tune of Rs. 2,25,885. The assessment stood completed under the State Sales-tax Act by the State Excise Taxation Officer, as mentioned earlier, on 12-6-1980 and at that stage the assessee did not produce the books of accounts since the assessee claimed that these having been lost were not traceable. The assessee is said to be doing wholesale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 84 (Cal.) and CIT v. M.S.T.V. Neethimohan Co. [1977] 107 ITR 585 (Mad.) were pressed into service by the ld. CIT(A). 3. The revenue is aggrieved and we have heard the parties at length. The case of the assessee remains that the higher income declared in the revised return was on estimate and further that alleged capital investment in alleged unaccounted for sales could not be a subject matter of concealment. Further that return was filed voluntarily and it was so revised suo moto and voluntarily under section 139(5) of the Act. Yet further that there was no detection by the Income-tax Department about any unaccounted for sales or else understatement of net profit much less inaccuracy of particulars, since no books of account have been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... maniam Bros. [1985] 152 ITR 529 (Mad.), Chuharmal v. CIT [1988] 172 ITR 250/38 Taxman 190 (SC), Dhampur Sugar Mills Ltd. v. CIT [1973] 90 ITR 236 (All.), Addl. CIT v. Chandravilas Hotel [1987] 165 ITR 300/[1986] 29 Taxman 492 (Guj.), CIT v. Meerut Construction Co. [1987] 166 ITR 702 (All.), CIT v. Rajeshwar Singh [1986] 162 ITR 173/26 Taxman 439 (Punj. Har.), Vishwakarma Industries v. CIT [1982] 133 ITR 652 (Punj. Har.) (FB) and CIT v. Ram Singh Harmohan Singh [1980] 121 ITR 381 (Punj. Har.) (FB), Patna Timber Works' case, Lalit Mohan Deb's case, M.S.T.V. Neethimohan Co.'s case and Harnam Singh Co.'s case have been pressed into service. The revenue's stand is that the assessee filed the original return on 21-7-1979. Income was d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e for levy of penalty under section 271(1)(c) of the Act and the subsequent filing of the return which the assessee claims to be a revised return, shows a deliberate act of suppression of sales and the resultant total income when the original return was filed. 5. We have heard the parties at length and gone through the case law relied upon from which we have been benefited much. Sub-section (5) of section 139, as it stood in relation to the assessment year under appeal, read as under : " Section 139(5)---If any person having furnished a return under sub-section (1) or sub-section (2) discovers any omission or any wrong statement therein, he may furnish a revised return at any time before the assessment is made. " 6. Qua the return rev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed on the turnover and estimate of that profit, vis-a-vis the first return when the turnover was worked out at Rs. 6,68,384 but which in actuality was Rs. 8,94,260, the assessee has to be held as having concealed the particulars of the income, hence has to be held guilty of the charge of concealment as provided under-section 271(1)(c) of the Act vis-a-vis the first return filed by the assessee on 21-7-1979. The penalty is leviable when this return was filed. In view of the ratio of the decision of the Full Bench of the Hon'ble Punjab and Haryana High Court in the case of Ram Singh Harmohan Singh, concealment of income, which attracts penal provisions of section 271(1)(c) of the Act, takes place when the return is filed and the quantum of p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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