2019 (4) TMI 608

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....e Act' hereinafter) for the relevant years, imposed at the minimum amount of 100% of the tax sought to be evaded in terms of Explanation 4 to the provision vide separate orders, both dated 20.3.2015. 2. It would be relevant to recount the background facts of the case, which are the same for both the years, as also the respective cases of both the parties, and which explains the hearing of the appeals together, and their disposal per a common, consolidated order. Reference to the dates and figures in the narrative is for AY1992-93, with that for AY 1993-94 being in brackets. Assessment in the first instance was made at an income of Rs. 2,79,000 (Rs.3,44,000), as against the returned income of Rs. 23,000 (Rs.29,125), comprising Rs. 11,....

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....iate penalty proceedings afresh, and directed fresh assessment for both the years (ITA No. 3662/Asr/2000, dated 30/4/2004). Assessments were accordingly made afresh, enhancing the income to Rs. 4,06,500 (Rs.4,26,700), and penalty proceedings u/s. 271(1)(c) initiated, though the net profit rate of 8% on the revised turnover was not disturbed (vide separate orders u/s. 143(3) r/w s. 263, dated 22.03.2002). The said rate of profit stood reduced to 2.5% in first appeal, and the assessee did not carry the matter further. Penalty proceedings, initiated at the conclusion of the assessments, were proceeded with. Penalty was levied in respect of the additional profit on the undisclosed turnover (i.e., with reference to the original return); the a....

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....not the income on the additional, admitted turnover be assessed at the same rate, as indeed it was in the original assessment proceedings? The undisclosed purchases by the assessee for the relevant years are at Rs. 24.38 lacs and Rs. 32.40 lacs for AY 1992-93 and 1993- 94 respectively. That is, as it appears, the undisclosed profit for the two years is in fact in a much higher sum of Rs. 5.74 lacs (Rs.30.12 lacs - Rs. 24.38 lacs) and Rs. 4.74 lacs (Rs.37.14 - Rs. 32.40 lacs) for the two consecutive years respectively. All these facts are on the basis of the material on record and, in fact, admitted. The income had, rather, been assessed a much lower rate of 2.5%, applied uniformly for both the manufacturing and trading turnover. How then....