2004 (9) TMI 65 - HC - Income Tax

Levy of penalty during search certain papers, gold and other articles were seized - unexplained investment of Rs. 23,000 - applicant has not maintained any books of account and has further disclosed its income for the assessment year 1975-76 only to the tune of Rs. 13,900 - assessee could not offer any plausible explanation before the Tribunal. The Tribunal has upheld the levy of penalty. We do not find any infirmity in the order of the Tribunal.

Summary

The High Court of Allahabad upheld the levy of penalty of Rs. 23,000 on a Hindu undivided family engaged in money-lending business for unexplained investment. The Tribunal found the family did not maintain books of account and disclosed income of only Rs. 13,900 for the assessment year 1975-76. The penalty under section 271(1)(c) of the Income-tax Act was upheld by the Tribunal. The Court ruled in favor of the Revenue and against the assessee.