1975 (9) TMI 52

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.... Indian Income-tax Act, 1922 ?" The Tribunal cancelled the penalty in the following circumstances: The assessee is a firm carrying on business in mica mining. For the assessment year 1957-58 it filed a return declaring an income of Rs. 8,249 from the mining section. The Income-tax Officer was not satisfied with this. He pointed out, during the course of the assessment proceedings, that he had information regarding various other internal and external transactions. The assessee after discussion with the Income-tax Officer agreed to the assessment on a total income of Rs. 60,000 from mica mining. But the matters did not stop there. The Income-tax Officer appears to have conducted some subsequent enquiries and thought that even the assessmen....

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....d on by the department and the entirety of the circumstances reasonably point to the conclusion that the amount added in the assessment represented the assessee's income and that the assessee had consciously concealed the same or had deliberately furnished inaccurate particulars thereof. In the circumstances, following Anwar Ali's case, the Tribunal held that the department had not made out a case for the imposition of penalty of the assessee under section 28(1)(c) of the Act. Before us, learned standing counsel for the revenue strongly relies on the circumstance that the assessee had agreed to the assessment on the total income of Rs. 60,000 despite his return for a much lower amount. On a consideration of the totality of the circumstan....