CIT Vs. SADHU SINGH & SONS

JUDGEMENT

(1.) This appeal filed under section 260A of the Income-tax Act, 1961 (for short "the Act"), at the instance of the Revenue is directed against the order of the Income-tax Appellate Tribunal, Amritsar Bench, Amritsar (for short "the Tribunal"), passed on 27-5-1999, in Income-tax Appeals Nos. 467 and 468 (ASR)/1990, for the assessment year 1982-83. The facts as narrated in the petition are culled out hereunder.

(2.) The matter herein relates to assessments made for two periods during the assessment year 1982-83, the first being for the period up to 5-8-1981, and the second from 16-8-1981 up to 31-3-1982, because of change in the constitution of the assessee-firm. During the course of assessment proceedings, it was detected that the assessee had suppressed the value of closing stock. Besides this, certain deposits were found which were not disclosed in the books of account of the assessee. For the first period up to 15-8-1981, suppression in the value of closing stock was worked out at Rs. 36,536 and for the remaining period up to 31-3-1982, at Rs. 1,01,970. The assessee on being checked furnished a revised return by enhancing its G.P. rate to 22 per cent. The matter again became subject-matter of scrutiny by the assessing officer. It was found that the assessee had not disclosed deposits of Rs. 18,000 and, apart from it, a cash credit in the sum of Rs. 26,000 was not found to be genuine. The assessing officer afforded an opportunity to the assessee to explain the above aspects and thereafter the said amounts were made as additions by treating them as income of the assessee. Accordingly, the assessing officer imposed penalties under section 271(1)(c) of the Act on the assessee in the sum of Rs. 44,090 for the first period and Rs. 1,92,600 for the remaining period, vide two separate orders dated 20-6-1988.

(3.) The assessee challenged the above orders of penalties before the Commissioner of Income-tax (Appeals) (in short "the CIT(A)")-The appeal was accepted, vide order dated 29-1-1998. The appeal preferred by the Revenue against the order of the Commissioner of Income-tax (Appeals) was, however, dismissed, vide order dated 27-5-1999. This is how the present appeal at the instance of the Revenue came to be filed.