2012 (8) TMI 969

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sposed of by a consolidated order. First We take up the ITA NO. 930 of 2008 2. The assessee has raised the following grounds of appeal:-   "The Learned Commissioner of Income (Appeals)-V, Baroda, has erred confirming penalty imposed under the provisions of Section 271(1)(c ) of the Act. The Learned Commissioner of Income (Appeals) ought to have confirmed penalty." 3. The assessee has also taken additional ground that reads as under:- "The penalty is bad in law because the Assessing Officer's penalty order does not specifically state whether the same is imposed for concealing particulars of income or for furnishing inaccurate particulars of such income as held by Hon'ble Gujrat High Court in New Sarothia Engineering Co. V....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....so bad in law because the AO has not specifically stated whether the penalty is imposed for furnishing the inaccurate particular of income or concealing particulars of income. He drew over attention to the penalty order wherein the AO has observed that it is clear that the assessee concealed income /furnished inaccurate particular of income. He placed reliance on the judgment of Hon'ble Gujrat High Court rendered in the case of New Sorathia Engineering Co. Vs. Commissioner of Income Tax (2006) 282 ITR 642 (Guj) and also judgment of Hon'ble Gujrat High Court in the case of CIT vs. Manu Engineering Works (1980) 122 ITR 306 (Guj), in support of his contention that it was incumbent upon the AO to give a clear cut finding whether the assessee ha....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sessee as is held by several case such as Culcutta Agency Ltd 19 ITR 191(SC) and Imperial Chemical Industries (India) (P) Ltd 74 ITR 17 (SC). In the present AO has made sustained enquiry and found that the party does not exist in the claimed place. The assessee has not been able to prove the existence of the party. This finding is very vital. Findings in the assessment proceedings constitute good evidence of concealment. (Somnath Mills 214 ITR (Guj). The assessee has filed particulars of an expenditure which cannot proved. To this extent the assessee has furnished inaccurate particulars within the meaning of Section 271(1)(c). In the case of Vidya Gouri Natwarlal 238 ITR 91 (GUJ) it has been held that mere disclosure does not save the asses....