2016 (9) TMI 859

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....law : "Whether on the facts and circumstances of the case and in law, the Tribunal erred in deleting the penalty levied by the Assessing Officer, holding that there was no concealment of income in the present case and additional income was offered by the Assesses on the basis of mistaken understanding of the consequences of discrepancies?" 4. Briefly, the facts leading to this appeal are as under : (a) The Respondent Assessee filed its return of income for the Assessment Year 1989-90 on 29 December 1989 declaring a total income of Rs. 4.50 lakhs. During the course of assessment proceedings, the Assessing Officer noted discrepancy in the stock available (after purchases) and the sales made therefrom resulting in a negative sto....

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....cepted the order of the CIT(A) in regard to Assessment and did not agitate the issue further. (c) In the meantime, pending the disposal by the CIT (A) of the Respondent Assessee's appeal in quantum proceeding, the Assessing Officer on 17 December 1990, passed an order imposing penalty under Section 271(1)(c) of the Act upon the Respondent Assessee. This on the basis of the conclusion recorded in the order dated 20 September 1990 of Assessment passed by the Assessing Officer. This resulted in the order dated 17 December 1990 imposing a penalty of 100% of the tax sought to be evaded i.e. Rs. 21.56 lakhs on a concealed income of Rs. 41.07 lakhs. (d) Being aggrieved, the Respondent Assessee carried the order dated 17 December 1990 imp....

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....ned Counsel for the Revenue, is that there was concealment of income, as is evident from the fact that the Respondent Assessee has itself accepted the same in regular assessment and offered the concealed income to tax. It was submitted that the concealment is evident from the negative stock, as reflected in the order of the Assessing Officer and the intent of the Respondent Assessee was to reduce its tax liability by concealing its income. In view of the aforesaid, it is submitted that penalty imposed upon the Respondent Assessee by the Assessing Officer and CIT(A) need not have been interfered with by the Tribunal. 6. We find that the impugned order of the Tribunal on the basis of the record available before it has come to the conclusio....