2005 (1) TMI 21

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nd in the circumstances of the case, the Tribunal was justified in holding that the penalty notice issued to the assessee was proper and the penalty proceedings initiated thereon were legal and no blanket proceedings were initiated against the assessee? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the legal requirement of satisfaction is of only the prima facie satisfaction of the Assessing Officer, in respect of concealment of income or furnishing inaccurate particulars of income before issuing notice under section 271(1)(c) of the Act?" In substance, the question that arises for consideration in this reference is-Whether initiation of penalty proceedings by the Assessing O....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ibunal by their order out of which this reference arises at the instance of the assessee under section 256(1) ibid made by the Tribunal. Heard Mr. V. Assudani, learned counsel for the applicant, and Mr. R.L. Jain, learned senior advocate with Ku. V. Mandlik, learned counsel for the respondent. Having heard learned counsel for the parties and having perused the record of the case, we answer the question against the assessee and in favour of the Revenue. A mere perusal of the facts stated in the statement of facts drawn by the Tribunal would show that the assessee did not disclose their true particulars while submitting their income-tax returns for the year in question. Had there been no raid operations in the business/residential pr....