1979 (1) TMI 134

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.... These two appeals by the assessee are directed against the levy of penalties of Rs. 1,254 and Rs. 5,363 for the asst. yr. 1972-73 and 1973-74 respectively under s. 271(1)(c) of the IT Act, 1961. 2. In the original returns of income filed by the assessee for those two years, he had declared, on estimate, taxable interest at Rs. 500 and Rs. 600 respectively. On enquiry, the ITO found that the i....

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....sant with tax laws and only a Consulting Engineer, filed his returns of income himself showing income from bank interest at estimated figures of Rs. 600 and Rs. 800 inadvertently without verifying from the bank pass book as the same was not readily available. He urged that the inadvertent mistake like this was no equivalent to gross negligence. The AAC, however, rejected these contentions. He held....

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....s for the ITO, if he had any doubt, to ask the assessee and make enquiry into it. The ITO did not make any such enquiry in the original assessments. In the re-assessments he added the actual interest credited in the assessee's account with the Bank. The assessee's clear declaration in the returns that the amount was being declared on estimate would raise probabilities and create doubts the benefit....