PRASANNA ENTERPRISES Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal has referred the following two questions of law arising out of its order dated August 16, 1994, pertaining to the assessment year 1990-91 :

(2.) THE assessee is a firm. THE assessee filed its return of income for the year 1990-91 on August 27, 1990, declaring a total income of Rs. 48,361. THE assessment was, however, completed on March 31, 1991, under Section 143(3) at the figure of total income of Rs. 8,46,361 making the following additions : <FRM>JUDGEMENT_188_ITR244_2000Html1.htm</FRM>

(3.) THE Tribunal, on the basis of the facts of the case, came to the conclusion that there was concealment of income and upheld the imposition of penalty but directed that the computation of penalty amount be restricted to the disallowance of Rs. 2,75,720 as sustained by the Income-tax Appellate Tribunal in the quantum appeal. So far as the disallowance with regard to the vehicle maintenance expenditure, the Tribunal held that although the disallowance in that regard had been sustained at Rs. 75,000, the said disallowance was mainly on the ground of absence of supporting vouchers/receipts relating to the expenses and, hence, the provisions of Section 271(1)(c) could not be said to be applicable to such disallowance.