2010 (8) TMI 91

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....A of the Income Tax Act, 1961 (in short "the Act") against the order dated 30.6.2003 passed by the Income Tax Appellate Tribunal, Amritsar Bench, Amritsar (hereinafter referred to as "the Tribunal") in ITA No. 175 (ASR)/1997 for the assessment year 1988-89 proposing the following substantial question of law:- "Whether in the facts and circumstances of the case, the Income-tax Appellate Tribunal is justified in law in deleting the penalty on account of that the Assessing Officer has not detected any concealment of income before filing of the revised return ignoring the fact that the Assessing Officer, detected the concealed income vide order under section 143(3) dated 28.12.1989?" 3. Put shortly, the facts of the case as narrated in th....

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....rder of the CIT (A) and dismissed the appeal of the revenue. Hence, the present appeal. 4. We have heard learned counsel for the parties and perused the record with their assistance. 5. Learned counsel for the revenue submitted that the Tribunal had erroneously deleted the penalty levied under Section 271 (1)© of the Act. The revenue had detected the concealment and the filing of the revised return by the assessee was as a consequence of such detection and, therefore, penalty was exigible. The finding to the contrary is legally unsustainable. 6. Controverting the submission of learned counsel of the revenue, learned counsel for the assessee submitted that notice under Section 148 of the Act was issued in September, 1989 whereas th....

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....penalty proceeding while processing the original returns under section 143(1) of the Act. The notices under section 148 were also issued after the completion of three months and 22 days for the assessment year 1987-88 and three months and 8 days for the assessment year 1988-89 from the receipt of the report of the ADI and in the meanwhile, the AO had already made thorough enquiries from the banks regarding the purchase of drafts by the assessee, which clearly shows that at that time when the report of the ADI was received, the AO was not definite as to whether any concealment had taken place or not. We may point out here that the basis for issuance of notices under section 148 was nothing but the disclosure of the income by the assessee on ....