1989 (9) TMI 153

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....stions claimed to be questions of law and arising out of the order of the Tribunal dt. 30th March, 1989; "(1) Whether in the facts and under the circumstances of the case the Tribunal is justified to confirm and impose penalty under s. 271(1)(c) at Rs. 26,000 in view of the fact that the addition on estimate was sustained in the assessment at Rs. 26,000 on payment of wages? (2) Whether in th....

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....upon some case laws and made and addition of Rs. 78,500 which in respect of wages the assessee was not able to establish. On further appeal the CIT(A) reduced the addition to Rs. 52,000 and the Tribunal to Rs. 26,000. 3. The AO also initiated penalty proceedings under s. 271(1)(c) of the IT Act, 1961. The assessee raised no objection before the ITO in the penalty proceedings. On further appeal ....

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....ore, no question of law had claimed inflated expenditure. Even in the order of the CIT(A) dt. 11th Nov., 1985 cancelling the penalty which is best evidence in favour of the assessee it has been observed as under. "I was of the view that if the assessee had been maintaining maintaining complete records in respect of attendance and wages payments to workers in its regular course of business and i....

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....dered by such workers and payments made to them could be proved by producing them or by adducing other corroborative evidences if the matter was restored to the ITO for further scrutiny, the assessee's representatives expressed their helpnessness as the workers were engaged on casual basis and their where-abouts were not now known. On these facts I uphold the conclusion of the ITO." It is thus ....