TaxTMI 
TaxTMI 
2006 (2) TMI 259
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....tual selling rate in the year under consideration. He informed the rates as under: ----------------------------------------------- A. Shop of Camp-I, Bhilai Full Bottle Half Quarter (750 ml.) (500 ml.) (250 ml.) Masala Rs. 73 Rs. 49 Rs. 25 Plain Rs. 61 Rs. 41 Rs. 21 B. Shop of Camp-II, Bhilai Masala Rs. 73 Rs. 49 Rs. 21 Plain Rs. 61 Rs. 41 Rs. 21 ----------------------------------------------- Since there was a difference between the prices shown by the assessee and the rates supplied by the District....
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....e. So as to purchase peace and avoid litigation, in the assessment proceedings, the assessee surrendered the amount and that does not automatically establish the furnishing of inaccurate particulars. The assessee relied on the decision of the Hon'ble Supreme Court in Sir Shadilal Sugar & General Mills Ltd. v. CIT [1987] 168 ITR 705. 4. Considering the fact that there was no dispute with regard to fact that the information obtained from the State Excise Department revealed the rates and the rate at which the liquor claimed to have been sold by the assessee were much lower rates certified by the State Excise Department and thus by reducing the selling price in its books of account, the assessee consciously attempted to evade the tax. He held that the contention of the assessee that the surrender was voluntarily without any adverse finding has no merit. He held that had the Assessing Officer not made the investigation, the assessee would have conveniently been successful in evading the tax on the aforesaid sum. He held that the case cited by the assessee had no application. The CIT(A) gave partial relief to the assessee. Aggrieved by the order of the CIT(A), the assessee is in appe....
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....e followed by the trader in this field, no contractor maintains sales bills and the assessee is not an exception. In fact, there is no evidence on record to show that the assessee had earned more income than what he declared. In penalty proceedings, the onus is on the revenue to show that the assessee had positive income than declared. 6. Relying on the decision of the ITAT, Nagpur Bench in the case of Asstt. CIT v. Gupta Enterprises [IT Appeal No. 463 (Nag.) of 1997], the counsel submitted that in this case the Tribunal held that where no books of account are maintained, 3 per cent rate of profit taking the sales two times of the licence fee is sufficient If that be so, the assessee had shown more than that and, therefore, no penalty could be levied. 7. On the other hand, the ld. Departmental Representative supported the orders of the lower authorities. Inviting our attention to para 10 of the order of the Tribunal in the case of Dy. CIT v. Suresh Kumar Jain [2004] 86 TTJ 289 (Nag.), he submitted that this is a fit case to levy the penalty. He submitted that in this case, the decisions relied upon by the assessee had been discussed thoroughly and ITAT decided the issue in fa....
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....se of Akshay Bhandar, the Hon'ble Guwahati High Court held that even after the deletion of the word "deliberately", the word "concealed" shifted the burden of proof to the assessee but still it is a rebuttable one. Coming to the instant case of the assessee, as rightly contended by the counsel for the assessee, the State Excise Department has not fixed any sale price. There is no positive evidence to show that the assessee had sold the liquor for higher price. The fact that the assessee has accepted the assessment and offered the income to tax does not automatically lead to the conclusion that the assessee had concealed the income. Penalty proceedings are independent and the assessee is not precluded from giving evidence at that stage. It may be a good case to make addition but it is not necessary that such cases lead to levy of penalty, if the assessee offers an explanation which is prima facie is acceptable. When the assessee has discharged his initial burden, then it is for the revenue to show positively that the assessee had concealed the income. 9. Coming to the decision of ITAT, Nagpur Bench in the case of Suresh Kumar Jain relied upon by the DR, this was a case of cash cr....