TaxTMI 
TaxTMI 
2011 (1) TMI 627
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.... penalty levied under section 271(1)(c) of the Income Tax Act in the sum of Rs.5,82,287/- for furnishing inaccurate particulars of income? [ii] Whether, on the facts and in thecircumstances of the case, the order passed by the Income Tax Appellate Tribunal is contrary to the evidence and material on record of the case, or not? [iii] Whether, on the facts and in the circumstances of the case, the order passed by the Income Tax Appellate Tribunal is suffering from non-application of mind and is perverse, nor not?" 2. The respondent assessee is a private limited Company, engaged in the business of processing work of dyeing and printing of cloth on job work basis. The assessee had filed return of income on 30th October 2....
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....assessing officer that the purchases were bogus. It was only when the assessee had miserably failed in that attempt that it had surrendered the same as income. It was submitted that in the facts of the present case, the assessing officer has conclusively established that the purchases in question were bogus and as such www.lexpertsonline.com the Tribunal was not justified in reversing the order of the Commissioner (Appeals). It was emphatically argued that the Tribunal, in the penalty proceedings cannot go behind the assessment order and as such the appeal deserves to be admitted by formulating substantial questions of law as proposed or as may be deemed fit by the Court. 4. As can be seen from the impugned order of the Tribunal, th....
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.... various parties and have not, in fact, sold any goods. The contention of the assessee is that the Assessing Officer has accepted the surrender made by the assessee and has not brought any material on record to show that the purchases,in fact, shown by the assessee were bogus. 9. In the above facts and circumstances of the case, we are of the considered opinion that the Assessing Officer has relied on the submissions of the parties namely M/s. Abhi Dyes and M/s. Pooja Dye Chem in the case of Vardhaman Fabrics Pvt. Ltd., that they have given bogus bills and have not actually sold any goods. The Assessing Officer, after investigation, has not brought any material on record to show that these parties have not sold any goods to the asse....
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....r of fact that the Assessing Officer after investigation has not brought any material on record to show that the parties have not sold any goods to the assessee and have given bogus bills which had been shown by the assessee in its books of accounts. The Tribunal further observed that without bringing any material on record, the Assessing Officer could not have come to a conclusion that the assessee has filed inaccurate particulars of its income or has concealed its income in order to avoid payment of tax. According to the Tribunal, the Assessing Officer has merely accepted the surrender made by the assessee which was good as far as the assessment was concerned, but in order to levy penalty, the Assessing Officer was required to conclusivel....
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....ty of circumstances must reasonably point to the conclusion that the disputed amount represented income and that the assessee had consciously concealed the particulars of his income or had deliberately furnished inaccurate particulars". 7. Thus, the Supreme Court has held that the finding inthe assessment order is good evidence, but the same cannot be said to be conclusive. Besides, it is well settled that the order imposing penalty is quasi-criminal in nature and, thus the burden lies on the Department to establish that the assessee had concealed his income. Since burden of proof in penalty proceedings varies from that in the assessment proceeding, a finding in an assessment proceeding that a particular receipt is income cannot aut....