1993 (2) TMI 153

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....Act). 2. Briefly stated the relevant facts are that the assessee, an individual, declared income of Rs. 5,700 for asst. yr. 1977-78. At the assessment proceedings, the ITO noted that the assessee had introduced in his books of accounts an amount of Rs. 30,574 as initial capital. He treated the said amount as assessee's income from undisclosed sources and made an addition accordingly. On the bas....

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....e had worked at Calcutta, the certificate from one K.K. Surekha assessee's brother. It was also submitted that for the same assessment year, the IT authorities had levied penalties under s. 271(1)(a), 273(1)(b) and 272B of the Act, but those penalties were cancelled by the authorities concerned in view of the bona fides of the assessee. The learned Departmental Representative supported the order u....

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....her. The assessee could, therefore, save some money out of his earnings there. At least the probability of his saving some money out of his earnings at Calcutta cannot be ruled out. Moreover, the cancellation of penalties levied upon him for various defaults is also a relevant factor to be taken into account in order to appreciate assessee's intention and conduct. 5. It is no doubt true that if....