1984 (8) TMI 152 - AT - Income Tax

Summary

The appeal by the Revenue against the order of the AAC cancelling the penalty imposed under s. 271(1)(c) of the IT Act was dismissed by the ITAT MADRAS-A. The assessee estimated the cost of construction at Rs. 20,808 supported by a Valuer's report. The ITO made an addition of Rs. 21,000 as unexplained investment, later reduced to Rs. 15,000. The Tribunal restored the matter to the ITO for fresh determination. The revised assessment added Rs. 14,200. The AAC sustained the addition of Rs. 3,578. The penalty imposed for concealment of amounts was found unjustified as the estimate of cost of construction did not conclusively prove the added amount was the income of the assessee. The penalty was cancelled.