CIT Vs. BECHARBHAI P. PARMAR

JUDGEMENT

(1.) Revenue is in appeal against the judgment of the Tribunal dt. 25th Feb., 2009, by which the Tribunal was pleased to substantially allow the assessee's appeal and delete substantial portion of the penalty imposed by the AO and confirmed by the CIT(A) on different additions made during the block assessment proceedings. On 11th April, 2011, we had issued notice for final disposal, pursuant to which, learned senior advocate, Shri Soparkar, appeared and argued on behalf of the respondent-assessee. For the purpose of this appeal, following substantial questions of law arise:

(2.) In case of the respondent-assessee, search and seizure operation under s. 132 of the Act was carried out on 31st May 2001 at his residence, giving rise to the block assessment proceedings. The assessee filed return of income. The AO, while carrying out the assessment proceedings vide its order dt. 30th May, 2003, made various additions over and above the income disclosed by the assessee in his return. The AO determined the undisclosed income at Rs. 4.08 cores (rounded off) against the disclosed income of the assessee of Rs. 45,00,000 in the return for the block period.

(3.) Though, we would be discussing both these questions separately after taking note of submissions made by the counsel for the parties and authorities cited before us, to complete the narration, it would be appropriate to take note of the reasons given by the Tribunal to delete the penalties.