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In D & H Secheron Electrodes (P) Ltd. (281ITR421) the assessee company is found to have suppressed profits by:

  1. Debiting personal insurance premium of directors;
  2. Inflating packing expenses in the books of account; &
  3. Omitting to disclose the value of stocks at a particular location.

The assessing officer levied a penalty for non-disclosure of true income which action was confirmed by the ITAT. The Madhya Pradesh High Court too held that it is not a case of technical breach or what one may call a venial breach on the part of the assessee in not disclosing his true income. The High Court in a daunting way observed that this fact of suppression was very much within the knowledge of the assessee especially when it is a professionally led company being managed by Chartered Accountants.

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