9911796707
TMI Blog1980 (5) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... , showing income from money-lending at Rs. 215 and from house property at Rs. 260. The assessee did not maintain books of account in the form of cash book and ledger. The ITO on the basis of the previous record estimated the capital invested in money-lending at Rs. 78,000 and on that basis came to a conclusion that the income from interest would be Rs. 9,600. During the same year, the assessee had constructed a house, the cost of which was shown by the assessee to be Rs. 7,000. This was not accepted and the ITO estimated the cost at Rs. 10,000. The sum of Rs. 3,000 was treated as income from undisclosed sources. For the same year, the assessee had shown sales of land of the value of Rs. 29,305. Out of this amount, the assessee had satisfact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are akin to criminal proceedings and the onus lay on the Department to show that the amount of income concealed by the assessee was of revenue nature and was assessable as income and that the assessee had concealed it or deliberately furnished false particulars in regard thereto. Merely because the assessee's explanation was rejected by the Department, it would not necessarily give rise to an inference that the assessee has surreptitiously suppressed income. There should be material on record to prove the nature of the income and that it was taxable. The findings given in the assessment proceedings for determining or computing the tax are not conclusive as far as the penalty proceedings are concerned. The entirety of circumstances must be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly given a false return. In constructing a house with better management it may be possible to raise the construction, as the assessee has done, on spending Rs. 7,000. There is nothing to show that such a construction can be done only at cost of Rs. 10,000 or more. Therefore, as far as this part of the case is concerned, even though the estimate of the assessee was not accepted, it will not be proper to hold that the assessee deliberately gave inaccurate particulars. The penalty proceedings being penal in character the Department must establish that the receipt of the amount in dispute constituted income of the assessee. Apart from the falsity of the explanation, the Department must have before it, before levying penalty, material or evi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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