1976 (4) TMI 100

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....this credit entry. It was explained as having come out from the sale proceeds of the property at Pallavaram. This sale took place on 11th Feb. 1965. It was for a sum of Rs. 22,250. The ITO noticed that the sale proceeds were mainly utilised for discharging of other liabilities and the assessee got only a sum of Rs. 300. He, therefore, rejected the explanation and brought this amount to tax. The ITO also initiated penalty proceedings for concealment of income. 3. In the quantum appeal, the AAC confirmed the finding of he ITO that the sum of Rs. 20,001 was right assessed under the head "income from other sources". It appears that before the AAC an alternative contention was also taken namely, that the credit had come out of saving from out....

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....00 on the sale deed. However, he had the mortgaged money obtained a few months earlier to the extent of s. 15,000. Besides this, he had savings from his business which he had been carrying, on in the past. At any rate, the proceedings are penalty proceedings and the assessee's explanation has also been rejected. There is no finding that the sum of Rs. 20,001 was the income and that had been concealed. When an explanation is not accepted, it does not amount to a finding of concealment. At any rate, the ITO took the view that the assessee had concealed the particulars of income. There is no finding that the sum represented the income. However, the AAC tried to better the order of the ITO by holding that there was concealment of income. This t....