Law:

Section:

Section 271(1)(c) of the Income-tax Act, 1961 - Penalty - For concealment of income - Assessment year 1984-85 - During course of assessment proceedings, Assessing Officer found that assessee-society had received a sum, from insurance company on withdrawal from an Group Insurance Scheme, being premium paid in earlier years and allowed as deduction in past assessments - Assessing Officer brought said amount to tax under section 41(1) - Assessing Officer also levied penalty upon assessee under section 271(1)(c) rejecting assessee's explanation that instead of routing said receipt through profit and loss account, same was directly credited to gratuity fund account and because of that bona fide mistake, while preparing return of income, amount received from insurance company was not included in total income - Whether since omission had occurred not with intention but due to oversight and there was nothing on record to show that any particular individual member of assessee-society had any personal interest in committing act of omission, no penalty was exigible on assessee under section 271(1)(c) - Held, yes Section 253 of the Income-tax Act, 1961 - Appellate Tribunal - Appeals to - Assessment year 1984-85 - Whether in view of section 253, in case a party having succeeded before Commissioner (Appeals) opts not to file cross objection even when an appeal has been preferred by other party, from that it cannot be inferred that said party has accepted order or part thereof which was against it - Held, yes FACTS The assessee-co-operative society, filed its return of income for the assessment year 1984-85. In the course of assessment proceedings, the Assessing Officer called upon the assessee to explain as to why payment of insurance premium for having subscribed to a Group Insurance Scheme for the employees of society was not reflected in the accounts which had been allowed as a deduction in earlier years. The assessee explained that it withdrew from the scheme and discontinued payment of premium upon which it received a sum from the insurance company which was credited to gratuity fund account for the purpose of paying gratuity. The Assessing Officer, however, held that…

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