2004 (9) TMI 48

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....sar Bench, Amritsar (for short "the Tribunal") has referred the following question of law arising out of its order dated March 12, 1987, relating to the assessment year 1979-80 for the opinion of this court:- "Whether on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is right in law in upholding the findings of the Commissioner of Income-tax (Appeals) cancelli....

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...., 1979. It was, however, explained that the value of rejected goods had duly been entered in the book on September 17, 1979. Accordingly, the assessee offered a sum of Rs. 42,234, being the value of the rejected goods, for addition to its total income. The Income-tax Officer not only made the addition but also initiated penalty proceedings for concealment of income. He issued a show-cause notice i....

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....als), it is undisputed that the rejected goods were not received in the assessee's godown on the closing day, i.e., March 31,1979 and they were received long after, i.e. in September, 1979 when necessary entries were made in the closing stock. From the order of the Income-tax Officer, it also appears that the mistake in the assessee's account was pointed out some where in April, 1981, whereas the ....

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....ibunal, no effort have been made by the Income-tax Officer to find out if these goods had been duly entered in the stock in September, 1979, when these were actually received back and if they were duly entered, the assessee's intention cannot be said mala fide and it is a clear case of bona fide mistake. While it is not in every case of an agreed addition that the penalty has to be levied and if a....