During course of survey, incriminating evidences regarding purchase were found and stock statement showed a negative figure and there was a difference in closing balances in case of four sundry creditors and assessee, accordingly, filed revised return admitting additional income . Penalty was confirmed by the Tribunal . Dismissing the appeal of the assessee the Court held that burden is on the assessee to show that there was an omission or wrong statement in original return must be due to bona fide inadvertence or bona fide mistake on part of assessee and even if assessee agreed to addition with a condition that penalty could not be imposed, department is not precluded from initiating penalty proceedings.( AY. 2001-02, 2002-03)
Khandelwal Steel & Tube Traders. v. ITO (2018) 256 Taxman 305/ 167 DTR 249 / 304 CTR 500(Mad) (HC)
S. 271(1)(c) : Penalty – Concealment -Survey-Agreed addition- Revised return- Burden is on the assessee to show that there was an omission or wrong statement in original return must be due to bona fide inadvertence or bona fide mistake on part of assessee and even if assessee agreed to addition with a condition that penalty could not be imposed, department is not precluded from initiating penalty proceedings- levy of penalty is held to be valid [ S.69B ]