2004 (6) TMI 39

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....ection 271(1)(c) or remitted the case back to the assessing authority to be considered in the light of the Explanation? (2) Whether, on the facts and in the circumstances of the case, the Explanation being part of the main provisions of section 271(1)(c), the Tribunal is right in holding that a separate notice should have been given by the Assessing Officer before invoking the Explanation? (3) Whether, on the facts and in the circumstances of the case, the Tribunal is right in holding that the assessee was not deliberately showing a low estimate of income with a view to conceal his income?" The facts of the case are as follows: The assessee is an individual deriving income from contract works. For the assessment year under consi....

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....ty levied on the assessee. The Revenue took up the matter in appeal before the Tribunal. The Tribunal held on the facts that no penalty was leviable and it further held that since no notice was issued under the Explanation, penalty proceedings cannot be passed. It is against that this reference has come. After hearing both sides, we are of the view that the Tribunal was not correct in holding that the facts of this case do not give rise to penalty. In para. 7, it held that the Assessing Officer has not invoked the Explanation to section 271(1)(c) and it also was of the view that the finding of the Assessing Officer that the assessee has deliberately concealed the particulars of income and penalty was leviable was not correct. We heard....