1978 (3) TMI 123

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....the Asst. yr. 1973-74 under s. 271(1)(c) of the IT Act, 1961. The assessee is carrying on business in Sarrafa and pawning. The ITO noticed a cash credit of Rs. 2,000 in the name of Shri Dal Chand. The assessee did not proceed any evidence to prove the genuineness of this credit before the ITO. Accordingly, he added the amount of Rs. 2000 to the assessee's income from undisclosed sources. On appeal....

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....t proved to be genuine. 3. After hearing the parties, I am of opinion that the impugned penalty deserves to be cancelled. Firstly, the penalty order passed by the ITO stands vitiated for the reason that he did not give any opportunity to the assessee to produce the creditor Dal Chand inspite of a written request made by the assessee in this application dt.30th March, 1975. Secondly, in the asse....