TaxTMI 
TaxTMI 
1980 (4) TMI 91
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.... facts and in the circumstances of the case, was the Tribunal justified in cancelling the penalty imposed on the assessee for the assessment year 1962-63 ? " The Tribunal has accordingly stated the case for our opinion. It appears that in the course of assessment proceedings for the assessment year 1963-64, the ITO came across certain hundi loans alleged to have been taken by the assessee for the purposes of its business. When the ITO started enquiry into the genuineness of those credits, the assessee surrendered an amount of Rs. 55,000, representing such hundi loans, to be added to its total income for the assessment year 1963-64. That amount was accordingly added to its total income and the assessment for that year was completed. Therea....
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.... the assessee before the Tribunal to relate to those years. In this process, he added an amount of Rs. 20,000 to the total income of the assessee for the assessment year 1962-63, after reopening the original assessment under the provisions of s. 147. Thereafter, he took fresh proceedings for imposition of penalty under s. 271(1)(c) against the assessee for the year 1962-63, and referred them to the IAC, which resulted in the imposition of the penalty amounting to Rs. 25,031. The assessee again took the matter up in appeal before the Tribunal. The Tribunal opined that as the assessee had surrendered the amount of Rs. 55,000 for being included in the income of the assessee for the year 1963-64, and the department had, after accepting the sur....