1975 (7) TMI 30

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....or that purpose. The assessee did not have a stock account to record the supplies sent through the vans nor did it have a manufacturing account or a stock register for the issue of raw materials. The van salesman remitted monies periodically. In the relevant year, the Income-tax Officer noticed that on a number of occasions, the cash balances with the van salesman was not sufficient to make remittances recorded in the books. On April 15, 1961, the cash available was Rs. 207 while the amount remitted was Rs. 5,000. Similarly, on June 11, 1961, the cash available was Rs. 10,706 while the remittance was Rs. 12,820. There were similar remittances on other occasions also. The assessee explained that these excess remittances came to be made out....

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....pealed against this order of penalty to the Tribunal and submitted that there was no concealment warranting an application of section 271 of the Act. The Tribunal was not fully satisfied that this was a clear case of concealment of income. At the worst, in the view of the Tribunal, this was a borderline case where the assessee should be given the benefit of doubt. The explanation offered by the assessee in regard to the excess remittances was not found acceptable and an assessment was made rejecting the explanation. If the assessee had any deliberate intention of suppressing the turnover to the extent of Rs. 34,352, the Tribunal considered that the assessee would not have resorted to the method of excess remittances. The Tribunal also consi....