9911796707
TMI Blog1976 (4) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... mining the books of the assessee, the ITO found that during the asst. yr. 1970-71 (year ending on 31st March, 1970) the cash balance as on 31st March, 1970 was only Rs. 3,172.10. However, the ITO noticed that the opening cash balance for the next year viz., as on 1st April, 1970 was shown by an inflatory figure of Rs. 7,929.77. The assessee could not explain the cash difference to the extent of Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the penalty had been wrongly levied. 4. The assessment order for 1970-71 dt. 20th Feb., 1973 points out that the amount of Rs. 7,929.77 will have to be added either in the asst. yr. 1970-71 or 1971-72. It further points out that since the cash was introduced on the very first date of the next year, that amount should be treated as the income of the assessee for the asst. yr. 1970-71 only. Howeve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the concealment was during 1970-71. Admittedly, the cash credit was on 1st April, 1970 and if at all, it has to be treated as the income of the assessee, it was only in respect of asst. yr. 1971-72. Since this cannot be treated as the concealed income of the assessee for 1970-71, the levy of penalty cannot be supported. Hence, the appeal is allowed and the levy of penalty of Rs. 7,929 is cancelled ..... X X X X Extracts X X X X X X X X Extracts X X X X
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