Successful appeal deletes penalty for stock valuation discrepancy under section 271(1)(c) based on previous ruling.

The appeal was successful as the penalty imposed under section 271(1)(c) for a discrepancy in stock valuation between the bank statement and books of accounts was deleted. The tribunal found that a similar issue had been decided in favor of the assessee in a previous year, leading to the deletion of the penalty for the current year based on the High Court judgment. The appellant's argument of no intention to conceal income and accurate maintenance of stock records supported the decision to remove the penalty.

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Issues involved: Appeal against penalty u/s 271(1)(c) for difference in stock valuation between bank statement and books of accounts.

Summary:
The appeal was against the penalty imposed u/s 271(1)(c) for a difference in stock valuation between the stock statement provided to the bank and the stock as per books of accounts. The appellant argued that there was no intention to conceal income and that the stock records were maintained accurately. The tribunal noted that a similar issue had been decided in favor of the assessee for the assessment year 2001-02. The tribunal found that the facts were identical in both years, and since the penalty had been deleted for the earlier year based on a High Court judgment, the penalty for the current year was also deleted. The appeal of the assessee was allowed, and the penalty was removed.

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