TaxTMI 
TaxTMI 
2013 (7) TMI 200
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....ribunal is right in deciding that the expenses claimed could not be properly explained would not amount to concealment of income and penalty ?" 2. Inspite of service of notice by this Court on 22.04.2010 to the assessee/respondent, there is no representation for the assessee and the assessee chose to remain exparte. 3. After hearing the learned counsel for the Revenue and on going through the records, we have decided to take up the Tax Case Appeal filed by the Revenue. 4. The assessee is an individual, who derived income by acting as a Mediator between granite quarry owners and purchasers of granite. The assessee filed return of income for the assessment year 2004-05, offering total income of Rs.32,67,730/-. When the case was taken up fo....
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.... Rs.19,00,000/- was actually debited to Profit and Loss Account under the head service charges, after survey, by his letter dated 07.11.2006, the assessee offered the entire amount of Rs.32,67,730/- as his additional income and paid the tax of Rs.14,24,512/- on 15.11.2006. In the circumstances, the Assessing Officer came to the conclusion that there were manipulations in the supporting vouchers and there were no records to show that it amounted to service charges. Hence, the claims....
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.... time. It is further pointed out that there were two sets of vouchers, one set of vouchers to debit Rs.32,67,730/- and another set of vouchers for taking signatures from persons for payments to them on the basis of cubic meters. In view of the sets of vouchers in newly printed forms by replacing the old cash vouchers, the Commissioner of Income Tax, ultimately held that the assessee had consciously made a false claim. Even though the assessee made an attempt by making the debits towards 'Service Charges', he had withdrawn monies from his business and had made investments in various assets and none of these investments were included in the disclosure of Rs.73,11,487/- in the Account Statement filed along with the returns, thus, it clearly sh....
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....ontumacious or dishonest, or acted in conscious disregard of its obligation" and the Tribunal held that penalty in the case was not warranted. Aggrieved by the same, the present Tax Case Appeal is filed by the Revenue. 11. Learned Standing counsel appearing for the Revenue submitted that considering the detailed order passed by the Commissioner of Income Tax and the statement recorded from the assessee, it is evident that the assessee had consciously created bogus records for claiming deduction on expenditure, thereby, reducing his tax liability. It is worthwhile to note that the assessee had created bogus records to invest the said amount covered in the bogus expenditure on various names, which fact, cannot be lost sight in this case. 12....