D.R. Singh, J.M. - (1.) THESE two appeals filed by the Revenue against the respective orders of the CIT(A) in appeal No. 248/IT/CIT(A)/1993-94 and appeal No. 248/IT/CIT(A)/1993-94, dt. 17th Nov., 1997, have been heard together and are being disposed of through this common order because one of the issues involved in these appeals pertaining to penalty imposed under Section 271(1){c) on account of the addition of sales-tax liability is identical, for the sake of convenience.
(2.) In appeal No. 161/Chd/1998, the Revenue has taken the following effective ground : "On the facts and circumstances of the case, the CIT(A) has erred in cancelling penalty amounting to Rs. 3,87,525 imposed under Section 271(1)(c) of the IT Act, 1961." In appeal No. 160/Chd/1998, the Revenue has taken the following effective ground : "On the facts and circumstances of the case, the CIT(A) has erred in cancelling penalty amounting to Rs. 68,14,654 imposed under Section 271(1)(c) of the IT Act, 1961."
(3.) THE relevant and material facts for the disposal of the issue involved in the ground of appeal taken by the Revenue, as borne out from the orders of tax authorities below, for asst. yr. 1983-84 are that after the orders of appellate authorities, the confirmed addition on account of surtax liability was Rs. "35,54,011 and on account of inclusion of excise duty in the closing stock was Rs. 63,69,269 and on account of the valuation of closing stock was Rs. 22,64,798. THE AO, after initiating penalty proceedings under Section 271(1)(c) and after considering the reply dt. 27th Dec., 1993, of the assessee, rejected the contention of the assessee and levied total penalty under Section 271(1)(c) of IT Act of Rs. 68,14,654 @ 100 per cent on the tax sought to be evaded.;