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October 2008

Penalty : Concealment of income : S. 271(1)(c) : Estimated addition : No evidence of concealment of income : Penalty could not be imposed

By K. B. Bhujle, Advocate
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9 Penalty : Concealment of income : S.
271(1)(c) of Income-tax Act, 1961 : A.Y. 1992-93 : Estimated addition : No
evidence of concealment of income : Penalty could not be imposed.


[CIT v. Sangrur Vanaspati Mills Ltd., 303 ITR 53
(P&H)]

For the A.Y. 1992-93, the assessee had filed return of
income disclosing income of Rs.65,18,970. The Assessing Officer rejected the
accounts, estimated the sales and made an addition of Rs.66,16,865. The
Assessing Officer also imposed penalty u/s.271(1)(c) of the Income-tax Act,
1961 for concealment of income. The Tribunal deleted the penalty on the ground
that there was no conclusive evidence that sales estimated by the Assessing
Officer were made outside the books of account.

 

On appeal by the Revenue, the Punjab and Haryana High Court
held that the Tribunal was justified in cancelling the penalty.

 


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