Case Law Details
RELEVANT PARAGRAPH
7. We have heard both the parties and perused the relevant orders of the revenue authorities, the orders of the Tribunal as in quantum appeals, write-ups and the details relating to the investigations undertaken by the AO during the set aside proceedings referred to in the said orders. Factually, the assessee is a Cable Work Contractor and executed various contracts in the names of various concerns and received labor contract receipts. At the end set aside assessment proceedings, the gross receipts were determined at Rs 1,79,19,860/ – and the profit was determined at Rs 26,87,979/-at @ 15% of the receipts, which is finally worked out to Rs 10,75,191/-, ie 6% on the revised gross receipts as per the order of the JTAT. Further, the assessee filed return of income declaring the total income of only Rs 1,82,010/- against the final assessed income of Rs 10,75,191/- at the end of the appeal proceedings before the TTAT. It is also an admitted position that the assessee admitted to an additional contract receipts of Rs 35,52,620/- and the same was done after the issue of show cause notice.
10. In connection with the facts in the preceding paragraph, we have perused the provisions of section 271(l)(c) and found that in such matters of penalty under the said section, the wilfulness of the assessee is not essential in concealing the income or in furnishing of inaccurate particulars. Relevant provisions of the section and the Explanation 1 are important and they read as under.
“271(1) If the assessing officer or the commissioner (Appeals) or the commissioner in the course of any proceedings under this Act, is satisfied that any person—
(a)…
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