1999 (5) TMI 10 - HC - Income Tax

Income-tax Penalty Cancelled: Tribunal rules discrepancies in assessments not deliberate concealment

Commissioner Of Income-Tax Versus Prem Das (No. 1)

The Tribunal dismissed the Commissioner of Income-tax's petition seeking cancellation of a penalty imposed under section 271(1)(c) of the Income-tax Act ... Reference, Penalty, Concealment Of Income Issues involved:The judgment involves a petition filed by the Commissioner of Income-tax seeking a direction to the Income-tax Appellate Tribunal regarding the cancellation of a penalty imposed under section 271(1)(c) of the Income-tax Act, 1961 for the assessment year 1982-83.Details of the Judgment:The assessee, engaged in transport business and other sources of income, initially declared income of Rs. 30,200 for the year 1982-83. Subsequently, a search was conducted at the business premises leading to a reassessment where the Assessing Officer determined the income at Rs. 1,21,205, including commission income. The Commissioner of Income-tax (Appeals) made adjustments to the estimates made by the Assessing Officer, reducing the commission income and increasing the expenditure allowance. Despite the penalty imposed by the Assessing Officer for income concealment, the Tribunal later canceled the penalty.The Tribunal's decision was based on the fact that the discrepancies in income assessment were due to differing opinions on estimated rates of income and expenditure. As the Assessing Officer and the Commissioner had varying estimates, the Tribunal concluded that there was no concrete evidence of income suppression by the assessee. Since the income was declared on an estimate basis and the variations were due to differences in opinion, the Tribunal found no grounds for penalty imposition.In conclusion, the Tribunal dismissed the application, stating that no question of law arose from their decision, as it was a matter of differing estimates rather than deliberate concealment of income.