P SASIKUMAR Vs. COMMISSIONER OF INCOME TAX (CENTRAL)

JUDGEMENT

(1.) The appellant is aggrieved with the penalty order, as modified by the First Appellate Authority, which has been confirmed in appeal by the Income Tax Appellate Tribunal. The question of law raised is as to whether the Tribunal was justified in sustaining the penalty under Section 271(1)(c), for the two assessment years; in the absence of any tangible material recovered in search and seizure forming the basis of addition on the ground of concealment of income. The additions were mere estimations and just as, the penalty with respect to the other years and a sizable quantum for these years, were deleted; so the balance too ought to have been deleted, argued learned Senior Counsel.

(2.) The assessment years are 2007-08 and 2008-09. The respective orders of penalty imposed an amount of Rs. 4,18,627/- and Rs. 4,23,111/- for the two years, the exact quantum of tax evaded; which was at the minimum as permitted. Annexure A is the order of penalty produced in both the appeals.

(3.) Additions were made by the Assessing Officer in the assessment, which were subjected to an appeal. Some modifications were made in the first appeal and later there were further modification made by the Tribunal. On the basis of the Tribunal's order and the additions sustained by the Tribunal, the Assessing Officer invoked the powers under Section 271(1)(c) for imposition of penalty; which are the orders impugned here. We are informed that the Revenue filed a further appeal from the order of the Tribunal in which certain additions deleted by the Tribunal were restored by the High Court. However, the consideration of the present appeal stands unaffected by the High Court's orders since the additions which were restored have not been dealt with in the present penalty orders. The assessse did not take up a further appeal from the Tribunal's order and the additions sustained by the Tribunal has attained finality, on which, presently the penalty is imposed.