1985 (12) TMI 127

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ithdrawals. Initial addition was Rs. 20,000 and returned income at Rs. 14,500 was increased to Rs. 34,738. Ultimately the Tribunal upheld an addition of Rs. 8,380. The tax effect of this addition was Rs. 2,666. The ITO initiated penalty proceedings under s. 271(1) (c) and has levied a penalty of Rs. 3,000 only. The said penalty has been confirmed by the AAC on appeal filed by the assessee. The ass....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....on of Rs. 8,380 was confirmed, He, therefore, was of the opinion that the assessee had failed to substantiate his explanation in respect of his house-hold expenses which resulted in an enhancement of income by Rs. 8,380. Obviously this order is a half-heated attempt by the ITO to justify the levy of penalty which it would not be safe for us to uphold. The admission by the assessee that there was n....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....concealment, the IAC levied penalty. it was held by the Bench that the said order was relevant and important piece of evidence, but was not conclusive that the income was earned by the assessee. The penalty was accordingly held not to be liveable. In CIT vs. Apsara Talkies (1983) 15 Taxman 384, penalty levied on account of difference between the cost of construction shown by the assessee and estim....