2006 (3) TMI 558

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....der. The only issue in these appeals is with regard to the validity of penalty imposed under section 271(1)(c) of the Income-tax Act, 1961. 2. The learned counsel for the assessee submitted that the assessee was clearing and forwarding agent, and that survey under section 133A was conducted at its business premises on 19th October, 2000 during the course of which the assessee surrendered an amount of Rs. 60 lakhs on account of its expenses not being fully verifiable and being supported by only self-made vouchers. The amount of Rs. 60 lakhs was surrendered in four assessment years as under : Assessment year Amount (in lakhs) 1998-99 12.5 1999-2000 13.5 2000-2001 14.0 2001-2002 20.0 Total 60.0 The lea....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....eported as CIT v. Ram Commercial Enterprises Ltd. [2000] 246 ITR 568 (Delhi) 256 ITR 571 (Delhi) (sic), CIT v. Munish Iron Store [2003] 263 ITR 484 (Punj & Har.), Amir Chand v. ITO [1994] 49 ITD 606 (Delhi), Harnam Singh Bishan Singh Jewellers (P.) Ltd. v. Asstt. CIT [2000] 69 TTJ (Delhi) 14, Jt. CIT v. Signature [2004] 85 TTJ (Delhi) 117, Narendra Kumar v. ITO [2005] 94 TTJ (Jodh) 156. 3. The learned Departmental Representative has opposed the submission of learned counsel for the assessee. He submitted that but for the issue of notice under section 148 or survey operations under section 133A of the Act, the assessee would not have come forward with admission that the expenses claimed by it are inflated or not fully vouched. He submitte....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... and these expenses cannot be verified with proper documentary evidence. Moreover, the persons to whom payments have been made cannot be traced. In view of the fact that the expenditure incurred on account of labour and mukandami charges, dock and customs expenses, sealing and strapping charges are not fully verifiable. I voluntarily disclose the following amount for the corresponding assessment years : Assessment year Income disclosed 1998-1999 Rs. 12,50,000 (Rs. Twelve Lakhs fifty thousand only) 1999-2000 Rs. 13,50,000 (Rs. Thirteen Lakhs fifty thousand only) 2000-2001 Rs. 14,00,000 (Rs. Fourteen lakhs only) 2001-2002 Rs. 20,00,000 (Rs. Twenty lakhs only) Total Rs. 60,00,000 (Rs. Sixty lakhs only) ....