1976 (4) TMI 108

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.... transport. It filed the return on 17th March, 1970 disclosing income of Rs. 76,113. No statements were filed along with the return. But on 23rd March, 1970, the assessee filed the usual statements as also a statement showing the peak of the credits in the handloom account and in R.L.M.S. Calicut account in its books showing the peak as Rs. 15,957 and Rs. 19,223 respectively. It also filed a letter of even date agreeing that Rs. 35,180, being the aggregate of such peaks, could be added to the income returned. The ITO, by his order dt. 31st march, 1970, completed the assessment determining the total income as Rs. 1,22,450. In doing so, he made an addition of Rs. 44,403 instead of Rs. 35,180, that being the aggregate of the peak credits in th....

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....of cash credits. He, accordingly, levied a penalty of Rs. 36,118. Hence this appeal. 3. It was contended before us by the assessee's learned counsel that the levy of penalty was not justified. It was urged that though the assessee had filed the return on 17th March, 1970 disclosing income of Rs. 76,113 for the assessment year under consideration, it had by its letter dt. 23rd March, 1970 agreed to the addition of Rs. 35,180 being the aggregate of the peak of the credits appearing in the handloom account and R.L.M.S. Calicut Loan account in the books of the assessee, that in view of this circumstance it could not be said that the assessee had concealed any income and consequently penalty could not be levied. Reliance was placed upon the d....