1979 (11) TMI 163

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....evied by the ITO under s. 271(1)(c) of the IT Act, 1961. The assessee is a registered firm consisting of two partners doing business in the manufacture and the sale of copper vessels. For the asst. yr. 1975-76 the assessee had returned an adjusted income of Rs. 14,866. The ITO, however, found on examination of accounts that there were two cash credits in the names of Adrian Fernandes and P.Swarnat....

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....ntentions and treated the two cash credits as income of the assessee from other sources under s. 68 of the Act. 2. Before the AAC in the quantum appeal an alternate contention was raised to the effect that the lady's husband Shri Desa had sold a property for Rs. 20,000 on 20th Dec, 1970 out of which a sum of Rs. 10,000 was invested in the firm as his capital. The balance had been kept with him ....

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....(CIT vs. Gajanand) it was held that even if an offer of cash credit to be taxed under s. 68 was made by an assessee, that by itself was not sufficient to lead to the assumption that the assessee had admitted such credit as his income. The AAC observed that there was no material on record to show that the assessee had concealed the particulars of its income. Referring to the Supreme Court decision ....

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....tified, penalty proceedings stand on a different footing. As observed by the Supreme Court in 76 ITR 696 (Anwar Ali's Case the Department should establish conclusively that the disputed amount represented the income that the assessee had consciously concealed and the mere rejection of the assessee's explanation will not tantamount to the fulfilment of this requirement. The departmental representat....