2013 (2) TMI 181

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....egally justified in sustaining the penalty U/s 271(1)(c)?" 2. Briefly stated the facts giving rise to the present appeal are as follows: The appeal relates to the Assessment Year 1989-90 in respect of the penalty imposed under Section 271(1)(c) of the Act. The appellant is a registered partnership firm. For the Assessment Year 1989-90 it had filed its return of income declaring income of Rs. 69,170/-. Regular assessment proceedings under Section 143(3) of the Act was initiated and in response to the same a notice under Section 143(2) of the Act was issued. The assessee along with its counsel participated and furnished the requisition information. An extra liability of Rs. 2,26,079.65 in respect of certain sundry creditors was found by....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....of penalty under Section 271(1)(c) of the Act. He placed reliance upon a decision of this Court in the case of CIT v. Saran Khandsari Sugar Works [2000] 246 ITR 216. The learned Standing Counsel appearing for the Department, however, submitted that when the appellant was asked to explain the difference in the appellant's papers in respect of the sundry creditors' account in respect of unexplained difference he simply stated that the amount shown was not correct but in order to buy peace it has surrendered the amount for adding in the income which shows that there was no plausible explanation available to the appellant. According to him, the Tribunal had rightly upheld the levying of penalty. 6. We have given our thoughtful consideration ....