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Section 271(1)(c) of the Income-tax Act, 1961 - Penalty - For concealment of income - Assessment year 1995-96 - Where during survey excess stock was found and Assessing Officer made addition on actual physical verification of stock, levy of penalty under section 271(1)(c) was justified [In favour of assessee] During survey at the business premises of the assessee, the surveying authority found excess stock which was not recorded in account books. The Assessing Officer made addition on account of excess stock and also levied penalty under section 271(1)(c). On appeal, the Commissioner (Appeals) deleted the penalty. The Tribunal reversed the order of the Commissioner (Appeals) holding that the addition had not been made on the basis of estimate but on actual physical verification of stock by the Assessing Officer during survey. Held that the order of the Tribunal was justified. JUDGMENT Ajay Kumar Mittal, J. - This appeal under section 260A of the Income-tax Act, 1961 (for short "the Act"), has been filed by the assessee against the order dated August 31, 2004, passed by the Income-tax Appellate Tribunal, Amritsar Bench, Amritsar, (SMC) (in short "the Tribunal"), in I.T.A. No. 332/ASR/1999 relating to the assessment year 1995-96. 2. The point for consideration in this appeal is, whether the Tribunal was justified in sustaining the penalty under section 271(1)(c) of the Act on the ground that there had been concealment of income by the assessee ? 3. Briefly stated the facts of the case as narrated in the appeal are that on August 5, 1994, a survey was carried out under section 133A of the Act at the business premises of the assessee-appellant. The surveying authority found the stock of first and second class bricks in excess to the tune of 28750 and 45280 respectively whereas the third class tiles were found short to the extent of 63400. The Income-tax Officer, on the basis of the above, vide order dated November 24, 1997, made addition of Rs. 44,380 on account of shortage in stock of third class tiles and Rs. 44,383 were added on account of excess stock of bricks of first and second classes. 4. The appeal of the assessee against the order of the Income-tax…

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