LAWS(MAD)-2001-2-26

COMMISSIONER OF INCOME TAX Vs. R SADAYAPPAN DECD

Decided On February 22, 2001
COMMISSIONER OF INCOME TAX Appellant
V/S
R. SADAYAPPAN (Decd.) (By LRs) Respondents

JUDGEMENT

(1.) THE questions referred to us arise out of the Tribunal's order for the asst. year 1966 67. The assessee had disclosed the purchase of a site for a consideration of Rs. 25,000. He subsequently admitted the fact that the real consideration was much more : Nevertheless, the Tribunal has chosen to hold that there were no concealment. This approach of the Tribunal cannot be approved. The assessee cannot make a false declaration knowing the real facts and thereafter when confronted with the facts after a raid and seizure, admit those facts and claim that such the subsequent admission takes away the effect of the wrongful conduct earlier displayed. The assessee is liable for penalty. The Tribunal was in error in setting aside the penalty.

(2.) AS regards the other question about the correctness of the Tribunal's findings that a sum of Rs. 18,750 did not represent the concealed income of the assessee, the Tribunal has considered all the materials placed before it before holding in favour of the assessee. The question raised is essentially one of fact and we answer that question in favour of the assessee. In the result, questions one and two regarding the correctness of the Tribunal's order cancelling the penalty is answered against the assessee and in favour of the Revenue, and the third question relating to the Tribunal's finding that the sum of Rs. 18,750 did not represent the concealed income is answered in favour of the assessee and against the Revenue.