1982 (6) TMI 29

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....sessment year involved is 1962-63. The question referred to us is as follows: " Whether, on the facts and in the circumstances of the case, the penalty under section 271(1)(c) of the Income-tax Act, 1961, was leviable on the assessee ? " The facts of the case were as follows : The ITO, while computing the total income of the assessee, added back an amount of Rs. 5,33,459 to the total inco....

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....came up in appeal before the Tribunal. As regards the interest and brokerage on hundi loans, the learned representative for the assessee submitted that these were fully covered by the assessee's disclosure of Rs. 8,52,942 under s. 68 of the Finance Act, 1965, which was accepted by the Department and so the assessee could not be penalised in respect of these accounts. Further, it was submitted that....

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....s [1958] 34 ITR 98 and more particularly on the observations contained at p. 106, which are as follows : " It has often been said that each proceeding under the Income-tax Act is a self-contained proceeding and the findings in one proceeding do not become binding in respect of other proceedings. Now, it is difficult to understand why this well-known principle should be departed from in penalty ....

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....ay state that the assessee had filed a loss return of Rs. 7,95,109 while the Income-tax Officer completed the assessment on total income of Rs. 4,18,188 after making various additions and disallowances. Of these additions, the chief item is of Rs. 3,15,814, about which the Inspecting Assistant Commissioner has made out quite a convincing case against the assessee at para. 6 of his penalty order. ....