ASSISTANT COMMISSIONER OF INCOME TAX Vs. ORIENTAL
INCOME TAX APPELLATE TRIBUNAL
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O.P. Jain, Judicial Member -
(1.) THESE appeals by the revenue pertain to the assessment years 1982-83 to 1984-85 and arise out of the consolidated order of the CIT(A) dated 3rd November, 1989. Briefly stated, search operations were carried out by the income-tax authorities at the business premises of the assessee on 5th Feb., 1985. Prior to that search, assessments for the assessment years 1982-83 and 1983-84 were completed under Section 143(3) of the Act. For the assessment year 1984-85, the assessee had filed return of income on 24th August, 1984. It appears that assessment for this year could not be completed before the search operations were carried out. During the search operations, some excess stock was found. The value of such stock was estimated by the assessee at Rs. 1.50 lakhs. The assessee had offered the said amount for taxation and had requested that it may be spread over as under :-
(2.) On 19th Feb., 1985, the assessee had filed a petition before CIT Under Section 273A making prayer for the spread over of the abovesaid income as already indicated earlier. This petition was not decided and in the meantime the assessee had filed revised return for the said assessment years under the Amnesty Scheme by making addition of the value of the excess stock as already stated above and deposited the tax thereon.
The Income-tax Officer did not accept the assessee's claim that the income of Rs. 1.50 lakhs offered by the assessee has to be spread over a number of years. He was of the view that the said income pertains to the assessment year 1985-86. Since part of the income was offered for taxation in the assessment years 1982-83, 1983-84 and 1984-85, the ITO had included the offered income as a protective measure with the observation that this income would be considered for assessment in the assessment year 1985-86. In addition to the income offered by the assessee, as stated above, the ITO, in the assessment year 1984-85, had also made an addition of Rs. 82,275 to the trading result.
(3.) ON the strength of the above addition, the Assessing Officer had initiated proceedings under Section 27l(1)(c) of the Income-tax Act, 1961, and had levied the penalty of Rs. 25,000, Rs. 25,000 and Rs. 1,00,000 for the assessment years 1982-83, 1983-84 and 1984-85 respectively.;
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