2002 (8) TMI 65

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..... and these may first be noticed. The appellant is a Halwai (sweets seller) and he was not maintaining any accounts. He filed his income-tax return on estimate basis and declared his income at Rs. 52,000. The income was, however, assessed by the Assessing Officer at Rs. 2,07,500 by estimating the appellant's sales and gross profit. The appeal filed against the order of assessment was dismissed by the Commissioner of Income-tax (Appeals) with the following observations: "In the light of the above discussion, I hold that the estimate of income by the learned Income-tax Officer is fair and no interference is called for." On further appeal, the Tribunal reduced the addition to Rs. 1,50,000. Hence, the income was finally assessed at Rs. 1,50,0 .....

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..... ent up in appeal before the Income-tax Appellate Tribunal which was allowed by order dated May 30, 2001. It is against this order that the present appeal has been filed which raises the aforesaid question of law. In order to attract clause (c) of section 271(1) of the Act, it is necessary that there must be concealment by the assessee of the particulars of his income or if he furnishes inaccurate particulars of such income. What is to be seen is whether the assessee in the present case had concealed his income as held by the Assessing Officer and the Tribunal. He had not maintained any accounts and he filed his return of income on estimate basis. The Assessing Officer did not agree with the estimate of the assessee and brought his income .....

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..... diture and other investments made during the relevant period. It is not the case of the Revenue that he had, in fact, incurred expenditure in excess of what he had stated. In this view of the matter, it cannot be said that the explanation furnished by the assessee had not been substantiated or that he had failed to prove that such explanation was not bona fide. In the result, the appeal is allowed and the question posed in the earlier part of the order is answered in the negative holding that the provisions of section 271(1)(c) of the Act are not attracted to cases where the income of an assessee is assessed on estimate basis and additions are made therein on that basis. Consequently, the impugned order of the Tribunal dated May 30, 2001, .....

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