Law:

Section:

Section 271(1)(c) of the Income-tax Act, 1961 - Penalty - For concealment of income - Assessment year 1987-88 - Whether every concealment does not attract rigour of section 271(1)(c) - Held, yes - Whether if due to some accountancy system maintained, one entry could not be subjected to tax, same could not be made basis for imposing a penalty under section 271(1)(c) - Held, yes R.L. Jain and Ku. V. Mandlik for the Appellant. JUDGMENT A.M. Sapre, J. - This is an appeal filed by the Revenue (Commissioner of Income-tax) under section 260A of the Income-tax Act, 1961, against an order dated 15-10-1998, passed by the Income-tax Appellate Tribunal (for brevity hereinafter referred to as 'the Tribunal') in I.T.A. No. 271/Ind/94. This appeal was admitted for final hearing on the following substantial questions of law : "1. Whether, on the facts and in the circumstances of the case and in law, the Tribunal was justified in holding that the provisions ofExplanation 4 to section 271(1) are not applicable in the instant case? 2. Whether, on the facts and in the circumstances of the case and in law, the Tribunal was justified in cancelling the penalty under section 271(1)(c) of Income-tax Act levied upon the assessee by the Assessing Officer ?" 2. Heard Shri R.L. Jain, learned senior counsel with Ku. V. Mandlik, learned counsel for the Revenue. None for the assessee. 3. In short, the question that arises for consideration in this appeal is in relation to imposition of penalty on the assessee amounting to Rs. 1,00,000 in the year in question, i.e., 1987-88, under section 271(1)(c) ibid. It was set aside by the Commissioner of the Income-tax (Appeals) and the order of the Commissioner of Income-tax (Appeals) was maintained by the Tribu-nal holding, inter alia, that no case for imposing penalty under section 271(1)(c) ibid is made out. 4. The assessee is a Government of India undertaking formed under the provisions of the M.P. Co-operative Societies Act. In the assessment year in question, due to non-disclosure of one entry, certain additions were made. This gave rise to initiation of penalty proceedings. In reply, the explanation of the assessee in substance was that it was…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492