- (1.) THIS appeal is directed against the judgment and order dated 10. 10. 2006 passed by the learned Income Tax Appellate Tribunal, Gauhati Bench, Guwahati in ITA No. 54 (Gau) of 2006. The learned Tribunal by the aforesaid order had set aside the order of the learned Commissioner of Income Tax (Appeals) affirming an order of penalty passed by the Assessing Officer under Section 271 (1) (c) of the Income Tax Act, 1961. Thereafter, the learned Tribunal had remanded the matter to the Assessing Officer for a fresh consideration in accordance with the directions contained in the order of the learned Tribunal. Aggrieved, the assessee has instituted the present appeal under Section 260 of the Income Tax Act, 1961.
(2.) WE have heard Sri A. Goyal, learned counsel for the appellant-assessee and Sri U. Bhuyan, learned Standing Counsel of the Income Tax Department.
(3.) THE brief facts that will be required to be noticed for the purposes of the present adjudication may now be set out hereunder: In the course of computation of the income of the assessee for the assessment year 2002-2003 under the provisions of Section 143 (3) of the Act, the Assessing Officer found a list of sundry creditors against whom different amounts were mentioned in the balance sheet of the assessee. Specifically, against one M/s Phil Corporation an amount of Rs. 9,31,022/- was shown by the assessee whereas against two other creditors i. e. Agfa India Pvt. Ltd. and one M/s Indian Jogi a sum of Rs. 51,276/- and Rs. 3260/- respectively was shown by the assessee. The Assessing Officer issued letters dated 8. 2. 2005 by registered post to the three creditors seeking confirmation. While M/s Agfa India Pvt. Ltd. had replied indicating that it had shown a sum of Rs. 31,163/- in its balance sheet as due from the assessee, M/s India Jogi had pointed out that their closing balance was nil. No reply was received from M/s Phil Corporation. Notice, therefore, was issued to the assessee asking for its explanation by 28. 3. 2005. The authorized representative of the assessee appeared before the Assessing Officer on 29. 3. 2005 and submitted an account confirmation of M/s Phil Corporation to the extent of Rs. 3,68,857/ -. The authorized representative of the assessee wanted further time to effectively reconcile the accounts of the creditors which was, however, refused by the Assessing Officer as the assessment had to be completed by 31. 3. 2005. Accordingly, the difference between the amounts shown by the assessee and those confirmed by the creditors totaling Rs. 5,85,537/- was treated as the undisclosed income of the assessee. By the assessment order dated 31. 3. 2005, penalty proceedings were directed to be initiated against the assessee. ;