1986 (11) TMI 82

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....f 34 months, 22 months and 10 months for the three years respectively. The WTO imposed penalty for all the three years. Aggrieved by the same, the assessee had appealed and they were also disposed of by AAC by a consolidated order whereby the annulled the penalty orders passed for all the three years. Objecting to the same, the Revenue has preferred these appeals. 3. It was contended on behalf of the Revenue that the assessee had not given any explanation for the delay as the orders passed by the WTO show and that when once the delay is shown, the penalty is automatic. Before the AAC the assessee had given his explanation which was found acceptable. The ld. departmental representative contends that the explanation should not have been acc....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ce. 5. We have considered the facts and circumstances of this case. It is a fact that the premises of Filmyug P. Ltd. had been searched by the Income-tax Department around May, 1972. Not only the books of accounts pertaining to Filmyug P. Ltd. but also the books and papers of the assessee had also been seized by the Department and these were all returned in July, 1974. These facts are certain. The AAC had examined the copy of the account of the assessee with Filmyug Pvt. Ltd. and he remarks that the assessee was declaring debit balances in his wealth-tax returns year after year. The debit balances with Filmyug P. Ltd. are substantial amounts and the liability claimed in this behalf was of the order of Rs. 4 to 5 lacs. Since this liability....