2009 (12) TMI 949

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....ri. Manoj Kumar, Addl.CIT ORDER PER BENCH : These appeals are filed by the assessee. The appeals are filed for seven consecutive assessment years 2001-02 to 2006-07. These appeals are directed against the common order passed by the Commissioner of Income-tax(A) at Mangalore, on 20.10.2009. These appeals arise out of the penalty orders passed by the Assessing Officer u/s.271(1)(c) of the I....

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.... the case of the assessee, there was a survey u/s.133A in the course of which veracity of certain creditors reflected in the books of account at the business place, were found out and examined. Those books were not in fact part of the regular books of accounts maintained by the assessee. The assessee agreed with the assessing authority to offer those credits as its income for the impugned assessme....

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....s as the result of that survey that the assessee had to offer additional income which have been assessed in his hands. But there is another crucial aspect in the case which has not been property appreciated by the assessing authority or by the Commissioner of Income-tax(A). Many of the credits offered by the assessee as its income for a particular assessment year in fact did not belong to that par....

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....e assessment years. Therefore, even though not in the form of a formal penalty, the assessee has suffered tax which might be more than necessary. This additional suffering in the hands of the assessee has not been considered by the lower authorities in a proper perspective. They have proceeded to levy the penalty in a mechanical manner treating the penalty as an inevitable consequence of additions....