1990 (1) TMI 103

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....ming the penalty of Rs. 72,634 imposed by the ITO under section 271(1)(c) of the Income-tax Act, 1961 for the assessment year 1980-81. 2. The learned counsel for the assessee has vehemently argued that there was no material before the revenue authorities to levy the penalty of Rs. 72,634. The assessee had filed the return of income on 5-8-1980 declaring the total income at Rs. 18,02,130. Howeve....

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....the taxable income. The assessee was aware of the fact that purchases worth Rs. 97,613 from Vinodchandra D. Gandhi were not genuine but were in the nature of hawala purchase entries. Since the assessee was a party to the hawala purchases it was aware of the fact and, therefore, it could not be said that it was a bona fide mistake on its part. 4. The Departmental Representative has further point....

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....ide his letter, dated 17-9-1981 had made certain enquiries regarding the payment of commission, sales, unsecured loans, etc. It also appears that specific enquiries were directed about the hawala purchases. After the assessee received the letter, dated 17-9-1981 from the ITO, it submitted the revised return disclosing the additional sum. 6. It may not be out of place to mention here that there ....

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.... to the person who had made the statement. If a person who furnished the return was aware of the falsity of the statement and the incorrectness of the particulars of income at the time when the original return was filed, there is no question for that person subsequently discovering the existence of the omission or creeping in of the wrong statement in the return already filed by him. Therefore, th....