Law:

Section:

Section 271(1)(c) of the Income-tax Act, 1961 - Penalty - For concealment of income - Assessee was engaged in business of manufacturing of poultry feed - After search of premises of assessee and its accountants - Assessing Officer made certain addition to declared income of assessee and also levied penalty under section 271(1)(c) - Though Tribunal partly upheld addition, it set aside penalty on ground that addition was result of disallowance and, hence, assessee could not be held to have concealed particulars of income - However, assessee had not shown any material which may support assumption in order of Tribunal that addition was on account of material which did not relate to concealment by assessee and Tribunal had also not indicated any material in support of its finding - Whether impugned order of Tribunal was to be set aside and matter was to be remanded to Tribunal for fresh consideration - Held, yes Denesh Goel for the Appellant. Animesh Sharma for the Respondent. ORDER Adarsh Kumar Goel, J. - This appeal has been preferred under section 260A of Income-tax Act, 1961 (hereinafter referred to as "the Act") proposing following substantial questions of law arising out of order dated 6-12-2004 of the Income-tax Appellate Tribunal, Chandigarh Bench, Chandigarh (hereinafter referred to as "the Tribunal") passed in ITA No. 855/Chandi/93 in respect of assessment year 1984-85 :- "(i)Whether on the facts and in the circumstances of the case, Hon'ble ITAT was justified in deleting the penalty by holding that nothing was brought on record by the Revenue to prove that net profit arrived at by the assessee was a result of concealment of income by the assessee when it was categorically proved in the order after utilizing the documents and evidences available coupled with corroborate evidences in the shape of various figures found in the return filed by the assessee that the assessee had concealed its income? (ii) Whether on the facts and in the circumstances of the case the Hon'ble ITAT was justified in taking a different view of facts that penalty was imposed only on mere disallowance of expenditures when the penalty was actually imposed on the basis of evidences…

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