TaxTMI 
TaxTMI 
2004 (8) TMI 317
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.... income of Rs. 77,954. Subsequently notice under s. 148 of the Act was issued. The assessment was completed on a total income of Rs. 6,35,836. The other relevant facts noticed from the penalty order of the AO are reproduced as below: "This case is related to the Mayabhai group on which a search under s. 132 was carried out on 13th June, 1989. Consequently, the group went to the Settlement Commission and the final order of the Settlement Commission under ss. 245D(4) and 245E was passed on 31st May, 1994 received on 4th Aug., 1994. On perusal of para 23 of the above order, it is stated that a M/s Alin Enterprises, the proprietary concern of M/s Mayabhai Family Trust (in which the assessee is a beneficiary to the extent of 20 per cent) had ....
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....p; Rs. 3,76,334 -- WT A 3/2000 -- Rs. 19,000 WTA 71/2003 -- Rs. 10,000 WT A 72/2003 -- Rs. 10,000 The learned Authorised Representative submitted that there was no question of concealment of income/wealth for the reason that the income/wealth had been offered voluntarily for taxation before th....
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....the subsequent years it was not possible for the Hon'ble Settlement Commission to pass an order in case of assessee in respect of his 20 per cent shares, i.e., Rs. 5,57,822 from Mayabhai Family Trust, proprietor of Alin Enterprise. He further submitted that having realised that the tax on additional income of Rs. 5,57,882 being 20 per cent share in Mayabhai Family Trust cannot be paid without reopening the assessment for asst. yr. 1984-85, the assessee's chartered accountant vide letter dt. 22nd June, 1994 requesting the AO for reopening the assessment for asst. yr. 1984-85 for taxing the said amount of Rs. 5,57,882. The learned Authorised Representative has also submitted that, Mayabhai Family Trust has already voluntarily disclosed before....
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....he Settlement Commission accordingly, directed that if the minors Manan and Alin have not disclosed their correct income from Mayabhai Family Trust during the year 1984-85, the Department will (be) free to take action as a consequence of the order of the Settlement Commissl0n. The Settlement Commission has also quantified the income of Rs. 5,57,882 each in asst. yr. 1984-85. On the basis of above facts, the learned Authorised Representative submitted that the Commission has waived all the penalties in case of three beneficiaries. The learned Authorised Representative submitted that two other beneficiaries have also the same share from Mayabhai Family Trust. Under the circumstances, he urged that penalty of concealment under IT Act and WT Ac....
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....e application of two beneficiaries of which case are under consideration had not been accepted by the Settlement Commission on the basis that the issue has already been settled in case of Mayabhai Family Trust wherein the two beneficiaries were having 20 per cent share each. We find that the concealment penalty has been levied only in respect of 20 per cent share of income/wealth from Mayabhai Family Trust by the assessees under consideration. The Settlement Commission has waived concealment penalties in case of Mayabhai Family Trust and three beneficiaries who were also receiving the same share 20 per cent amounting to Rs. 5,57,882 each. Under the circumstances we do not find any justification for levying concealment penalty for remaining ....