1988 (3) TMI 125

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....yr. 1978-79. 2. The assessee, who is an individual, derives income from business of electrocraft in the proprietary business name of M/s. Premier Electrocraft, 1727-H,BhagirathPalace,Delhi. For the asst. yr. 1978-79 in question, the assessee declared an income of Rs. 10,198 by showing sales at Rs. 95,838 and gross profit of Rs. 15,174 at the rate 15.8 per cent. The ITO noticed that the assessee....

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.... Rs. 15,000 but it did not lead to the conclusion that he had concealed the particulars of his income or had furnished inaccurate particulars. He contended that this had been done with the object of purchasing peace of mind and to avoid further litigation. The assessee further explained that he had maintained regular books of account which had been disbelieved by the ITO only due to certain routin....

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....tted on the basis of the following decisions that penalty could not be levied on the assessee merely on the basis of an agreed addition: (1) Vimal Herbert (Mrs.) L/H Of Late Dr. S.Herbert vs. ITO (1982) 14 TTJ (Chd) 156 (ChandigarhTribunal); & (2) Addl. CIT vs. Aggarwal Misthan Bhandar (1981) 131 ITR 619 (Raj). On the other hand, Smt. Archana Ranjan, the learned Departmental Representative s....

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....earned Departmental Representative has neither pointed out nor produced the original record to establish that the agreed addition amounted to as confession of concealment in the sense that the ITO had detected some concealment on account of which the assessee felt driven to the wall. In such a fact situation, it cannot be said that the explanation furnished by the assessee was not bona fide in ter....