1977 (2) TMI 52

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....irmed by the Appellate Assistant commissioner is questioned. 2. The assessee an individual had completed the construction of a house during the previous year ending 31st Mar, 1972 relevant to the assessment year 1972-73. The above construction was made during the year from 10th Apr, 1971 to 1st Feb, 1972. According to the books maintained by the assessee for the said construction the cost amoun....

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.... case for the levy of penalty and imposed a penalty of Rs. 10,000. On appeal Appellate Assistant commissioner confirmed the penalty. 4. Aggrieved by the said order of the Appellate Assistant commissioner the assessee has filed this appeal before us. The learned Representative for the assessee contended that there is no justification for the levy of penalty, that the cost of construction was dul....

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.....Behra (1) and others, and in the case of Commissioner of Income-tax Orissa vs. Kotini Krishnamurthy and Partners (2). 5. We have carefully considered the rival submission. It is common ground that the assessee has maintained accounts showing the cost of construction of the building. The cost as per the accounts amounted to Rs. 32,275. The Income-tax authorities have not challenged the correctn....

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.... on record to establish the above. On the basis of mere estimate of the cost of construction which varied from one figure to another figure as set out above the department has concluded that the assessee is guilty of concealment of income. We are, unable to uphold the above finding of the Income-tax authorities that the assessee is guilty of concealment of income. Shri Pattabiraman urged that the ....