TaxTMI 
TaxTMI 
2008 (3) TMI 309
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....the Tribunal was right in law in holding that penalty under section 271(1)(c) is not leviable in this case as the assessee has filed revised return before it was actually 'detected' by the Department ?" 2. The assessment years, in questions, are 1985-86, 1986-87 and 1987-88. Returns of the income for all the three assessment years were filed by the assessee, an individual, on October 31, 1985, October 31, 1986, and December 16, 1988, respectively. The assessments for the assessment years 1985-86 and 1986-87 were completed. Subsequently, on October 27, 1987, search and seizure proceedings under section 132 of the Act took place at the premises of one M/s. J. J. Corporation and its partners. During the course of such proceedings, various d....
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.... accounts, the Assessing Officer noted that such an amount reflected by the bank accounts in the name of the family members were not commensurate with the known sources of income of those family members and the pass books of the bank accounts were found from the custody of the assessee, the bank accounts were operated by the assessee, and the funds utilised by the assessee for investment in the firm ; therefore, the amount actually belonged to the assessee. He, accordingly, imposed penalties to the tune of Rs. 4,36,218 for the assessment year 1985-86, Rs. 5,67,500 for the assessment year 1986-87 and Rs. 11,85,000 for the assessment year 1987-88. 4. The assessee carried the matter in appeals before the Commissioner (Appeals). However, the....
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....es were raised from the assessee but no specific notice was issued by the Departmental authorities alleging particular item of income which has been concealed by the assessee. Thus, there was only a prima facie belief that the assessee has concealed his income for the assessment years under consideration and the process of detection was not complete by dated March 31, 1989, when the assessee filed the revised returns wherein additional income in the form of deposits in the name of the family members, interest earned thereon and certain other items of unexplained expenditure, etc., were offered for assessment in all the three assessment years under consideration. 7. The Tribunal has also noted it may be further pointed out that the Depart....
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....aring for the respondent-assessee, has supported the impugned order of the Tribunal by referring to the findings recorded by the Tribunal. It was also submitted that the revised returns of income were voluntary in nature and, in fact, there was no admission during the course of search and seizure proceedings as could be reflected from the statement made under section 132(4) of the Act. The learned advocate has cited as many as eight decisions. 10. As can be seen from the question raised and referred for the opinion of this court, the scope of the controversy brought before the court is very narrow. The court is required to determine only whether the Tribunal was right in holding that penalty under section 271(1)(c) of the Act was not lev....