Penalty cannot be levied on a basis other than what it was in Quantum Appeal

The basis for initiation of Assessment Proceedings by the Assessment Officer is that the Assessment Officer disbelieved the claim of the assessee that he was engaged in the business of discounting drafts, whereas the Tribunal held that the assessee carries on the business of Draft Discounting. The assessee has stated that the amount in the account is the amount of the drafts received of which assessee charges Rs.1/­ per thousand as commission. Explanation (1) to Section 271 (1)(c) of the Act states that if a person fails to offer an explanation or offers an exp

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