9911796707
TMI Blog1976 (4) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... e property at Pallavaram. This sale took place on 11th Feb. 1965. It was for a sum of Rs. 22,250. The ITO noticed that the sale proceeds were mainly utilised for discharging of other liabilities and the assessee got only a sum of Rs. 300. He, therefore, rejected the explanation and brought this amount to tax. The ITO also initiated penalty proceedings for concealment of income. 3. In the quantum appeal, the AAC confirmed the finding of he ITO that the sum of Rs. 20,001 was right assessed under the head "income from other sources". It appears that before the AAC an alternative contention was also taken namely, that the credit had come out of saving from out of his earlier business earnings. The AAC however, noticed that for the asst. yr. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the extent of s. 15,000. Besides this, he had savings from his business which he had been carrying, on in the past. At any rate, the proceedings are penalty proceedings and the assessee s explanation has also been rejected. There is no finding that the sum of Rs. 20,001 was the income and that had been concealed. When an explanation is not accepted, it does not amount to a finding of concealment. At any rate, the ITO took the view that the assessee had concealed the particulars of income. There is no finding that the sum represented the income. However, the AAC tried to better the order of the ITO by holding that there was concealment of income. This too was on the basis of rejecting the assessee s explanation. In the circumstances, no p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t were the actual income between 1962-63 and 1968-69 and how it was insufficient to the accumulation of Rs. 20,001 claimed by the assessee had not been demonstrated by the Revenue. Therefore, the more rejection of an explanation without any indication how it is false cannot lead to an inference that the sum of Rs. 20,001 was an income which was concealed. On the other hand, from the information available it would appear that the assessee was assessed on a total income of about Rs. 11,545 in 1962-63 an he had been having income though below the taxable limit in the subsequent years. This coupled with the fact that the assessee had the money obtained on the mortgage of the property to the extent of Rs. 15,000. It could have given the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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