I.S. Verma, J.M. - (1.) THESE are cross -appeals by the assessee and revenue.
(2.) INCOME Tax Act Nos. 2322 and 2657 (All)/1991 are by the assessee wherein the assessee has objected the order of the Commissioner (Appeals), confirming the levy of penalty under section 271(1)(c) on quantum of income disclosed by the assessee, during the course of search under section 132, whereas Income Tax Act Nos. 2240 and 2660 (All.) 1991 are by the revenue wherein order of the Commissioner (Appeals) cancelling the penalty on the amount of various disallowances are quantum of differences between the assessees claim of disclosing return of income has been cancelled. For the sake of convenience all the appeals are decided by this consolidated order.
(3.) WE have heard the assessees counsel as well as the learned Departmental Representative but before considering their respective submission, we prefer to record the brief facts as revealed from the records and are not in dispute, as under: The assessee is a private limited company. It filed its return of income for the assessment year 1987 -88 and assessment year 1988 -89 on 29 -6 -1987, and 30 -7 -1998, respectively. Search under section 132 was carried out at the assessees business premises as well as at the residence of its managing director and other director on 29 -11 -1988, and 30 -11 -1988.;