1996 (3) TMI 79

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....ings arising under section 271(1)(c) of the Act relating to the question of penalty. Although the Revenue has framed as many as 12 questions in Original Petition No. 3468 of 1995, since we are impressed only with two of them along with the aid of the third one from us, it would be an unnecessary burden on this judgment to reproduce all the 12 questions ad verbatim although it is customary. The factual matrix barely necessary for the above purpose would show that the assessee appears to be a jack of many trades such as fishing-probably dealing in the sale of fish and not in actual fishing as suchabkari business and what not jewellery also in combination. On January 29, 1982, his business and residential premises came under search un....

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....nder section 271(1)(c) of the Income-tax Act were already initiated for alleged concealment of income. By the order (annexure-"D") for the year 1979-80, penalty of Rs. 1,10,000 was levied by the Income-tax Officer. For the assessment year 1980-81 (subject-matter of the companion petition) penalty of Rs. 1,70,000 was levied on the basis of the order in the said petition. This order also in turn became the subject-matter of appeal before the first appellate authority---Commissioner of Income-tax (Appeals). The penalty order of the officer was confirmed in both the appeals in both these petitions. The proceedings was taken up before the Appellate Tribunal and both the appeals came to be allowed cancelling the penalty levied by the Income....

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....e the trumpet song of the judgment. We will have to consider this question with reference to items in the light of inter-play of the legal effect of the provisions of the Explanation. In our judgment, the following three questions would require a probe and consequent reference : "1. Whether, on the facts and in the circumstances of the case and also in the light of Explanation 1 to section 271(1)(c), relied on by the assessing authority, the Tribunal is right in law and fact in casting the burden of proof on the Revenue ? 2. Whether, on the facts and circumstances of the case, the Tribunal is right in law in deleting the penalty levied in relation to alleged income from : (a) toddy shop, (b) Shilpy Theatres, (c) Archana jewellery, and....