2005 (6) TMI 215

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....appeals pertain to the same assessee, contain common grievances against imposition of penalties under s. 271(1)(c) of the IT Act for the respective assessment years, and were heard together. As a matter of convenience, therefore, both of these appeals are being disposed of by way of this consolidated order. 2. To adjudicate on the assessee's grievances in this appeal, only a minimal reference t....

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....ers it was stated that additional income was being offered to tax only to avoid litigation and buy peace of agreed basis on the condition that no concealment penalty will be levied. While the AO did not impose penalty for the asst. yr. 1995-96, a specific order dropping the penalty proceedings was also passed by the AO for that year, penalties under s. 271(1)(c) were imposed for the asst. yrs. 199....

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....milar set of facts, no penalty is imposed for the asst. yr. 1995-96. The dropping of penalty proceedings for the asst. yr. 1995-96 is a conscious act by the AO as evident from the specific order dropping the penalty proceedings for that year. During the course of hearing before us, we did ask the Departmental Representative to explain this contradiction in the stand but he was not able to explain ....

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....ender per se cannot lead to the conclusion that there was a concealment of income. The factors surrounding the surrender of income also, in our considered view, do not establish that there was a concealment of income. In fact, all along the assessee has taken a stand that at the time of survey, relevant records could not be located and that there was no justification for this additional income on ....