2006 (10) TMI 106

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.... by the assessee against the order passed under section 271(1)(c) by the Departmental authorities?" 3. At the instance of the Revenue: "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in canceling the penalty under section 271(1)(c) of the Income-tax Act, 1961?" 4. The reference relates to the year 1983-84 in respect of the penalty proceedings initiated under section 271(1)(a) and 271(1)(c) of the Act. 5. Briefly stated the facts giving rise to the present reference are as follows. 6. The assessee deals in trading of silk yarn. During search and seizure operations under section 132(1) of the Income-tax Act, 1961, at the residential premises of Shri Jagdamba Prasad Tulsiyan, brother....

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....R 457. In the setting of the circumstances mentioned above, the departmental reference under section 256(1) is accepted and the question reframed as above is hereby referred to the hon'ble High Court of Judicature at Allahabad. 9. So far as the imposition of penalty under section 271(1)(a) of the Act is concerned the facts are as follows: 10. In R.A. No. 162 (Alld)/1993, briefly the facts are that the income-tax return filed by the assessee showed income less than Rs. 15,000 which according to the assessee, was below the taxable limit for unregistered firm. However, the total income assessed by the Assessing Officer was much above the taxable limit and the same stood at the figure returned by the assessee plus unexplained capital ....

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.... taxable and the assessee's own return could not come to the rescue of the assessee at the time of levy of penalty under section 271(1)(a) of the Income-tax Act, 1961. 11. Even though notice has been served upon the applicant to engage another counsel, nobody has appeared and, therefore, the question referred at the instance of the assessee is returned unanswered. 12. Now coming to the question of law, which has been referred at the instance of the Revenue, we find that in the order passed by the Income-tax Officer under section 271(1)(c) of the Act, a clear finding has been recorded that the assessee has furnished inaccurate particulars by concealing income as purchases were being made outside the books of account in a well plann....