1994 (7) TMI 41

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....ion on account of low withdrawals for household expenses, which had been added as income on an estimate ? " The brief facts of the case are that the assessee has shown withdrawlas of Rs. 11,439 on account of household expenses. The Income-tax Officer was not satisfied with this low figures of withdrawals and an addition on that account was made. The Income-tax Appellate Tribunal maintained the expenses at the figure of Rs. 25,800. In the assessment order, the Income-tax Officer referred to the enquiry report of the inspector which was duly signed by the assessee. The two sons of the assessee were studying in St. Anthony School, the assessee admitted a sum of Rs. 720 in respect of school fee and Rs. 780 in respect of tuition fee, and the ....

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....l, where the addition of Rs. 14,061 was maintained by the Tribunal. The Income-tax Officer initiated penalty proceedings under section 271(1)(c) and after hearing the assessee penalty of Rs. 7,000 was imposed. The Appellate Assistant Commissioner came to the conclusion that the assessee furnished inaccurate particulars consciously. The amount of penalty was, however, restricted to 100 per cent. of the tax levied. The order of the Appellate Assistant Commissioner was challenged before the Income-tax Appellate Tribunal. It was found that even during the penalty proceedings or even before the Tribunal, the assessee could not substantiate as to how he could have lived within the amount shown by him. The penalty was upheld. Learned counsel fo....