9911796707
TMI Blog1981 (12) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... age expenses. 2. The ITO found that a land has been purchased by the assessee s wife at a total cost of Rs. 11,000 during the previous year for this assessment year. He enquired as to the source for the acquisition of this property by the assessee s wife. It was explained by the assessee and his wife that the funds for the purchase of this land came from accumulated cash with the wife of the assessee. Such case, it was stated, had been accumulated out of small amounts said to have been gifted to the assessee s wife by her father in the course of a period of about 15 years. The ITO did not accept this position. He considered that there was no evidence that such small cash gifts were made by the father of the assessee s wife. That there was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is contended before us on behalf of the assessee in the appeal in ITA No. 1614/Hyd/1980 that the assessee had offered an explanation before the ITO regarding the source for these funds, that such explanation had not been accepted that is to say disbelieved by the ITO while making the addition, that while such action on the part of the ITO would be sufficient for the purpose of making the assessment, it is necessary for the ITO to further establish the necessary ingredients under s. 271(1)(c). It is contended that the ITO has not established those ingredients. The ITO cannot be considered to have established that the assessee has concealed the particulars thereof. It has been the contention of the assessee all along that property has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out by the ld. Deptl. Rep. that the assessee has himself stated before the ITO that the expenses on the marriage of the daughter of the assessee amounted to a sum of Rs. 1,000 and such expenses cannot be considered to have been accounted for by the assessee. It is submitted that the AAC was wrong in deleting the entire penalty of Rs. 8,500 in respect of these two items relating to unaccounted expenses of the assessee. In view of the admission by the assessee that a sum of Rs. 1,000 has been incurred for the marriage, penalty to that extent should have been sustained. On behalf of the assessee, it is submitted that there have been withdrawals to the tune of Rs. 10,000 not only by the assessee but by his sons who were partners with the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounts to his daughter over a period of years. In the absence of any such evidence showing that it is not possible to accept the explanation offered by the assessee, the stand taken by the lower authorities that the assessee is exigible to the penalty under s. 271(1)(c) cannot be accepted. We, therefore, cancel the penalty of Rs. 11,000 sustained by the AAC. 8. In respect of the small quantum of Rs. 1,000 on which the revenue has come in appeal, we are of the view that considering the other sons of the assessee, there is nothing improper in the stand taken by the assessee before us that this expenditure of Rs. 1,000 could have been met out of the funds accounted for by the assessee. The AAC was, therefore, justified in cancelling the penal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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