TaxTMI 
TaxTMI 
1960 (1) TMI 52
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....e business. When asked to explain the assessee stated that it represented the sale proceeds of gold ornaments of Srimati Purnima Debi, who is the wife of Chagganlal, one of the members of the Hindu undivided family. The explanation was not accepted by the Income Tax Officer, who held that the amount of ₹ 22,940 was the secreted profit of the hardware business. Taking this and other circumstances into account the Income Tax Officer estimated the income to be ₹ 75,000. But on appeal the estimate of profit was reduced to ₹ 50,000 by the Appellate Assistant Commissioner, Both the Income Tax Officer and the Appellate Assistant Commissioner have taken the view that the building constructed at Ranchi and standing in the name of ....
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...., the Appellate Assistant Commissioner or the Appellate Tribunal, in the course of any proceedings under this Act, is satisfied that any person - ***** (c) has concealed the particulars of his income or deliberately furnished inaccurate particulars of such income : he or it may direct that such person shall pay by way of penalty, in the case referred to in Clause (a), in addition to the amount of the Income Tax and super-tax, if any payable by him, a sum not exceeding one and a half times that amount, and in the cases referred to in Clauses (b) and (c), in addition to any tax payable by him, a sum not exceeding one and a half times the amount of the Income Tax and super-tax, if any, which would have been avoided if the income as retur....
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....nsel appearing on behalf of the Income Tax Department, but it was contended that there was material in the present case to show that the assessee was guilty of suppression of particulars of his income. In our opinion, however, there is no material in this case to support the finding of the Income Tax Appellate Tribunal that the assessee has concealed the particulars of his income or deliberately furnished inaccurate particulars of his income in the quantum proceeding. In the order under Section 28 (1) (c) of the Income Tax Act the Appellate Tribunal has stated that the explanation offered by the assesses with regard to the source of the amount of ₹ 22,940 was not found satisfactory. But it is one thing to say that the explanation of ....
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....t gold ornaments. The purja does not indicate what ornaments have been sold. If it is a fact that the ornaments of the lady had been previously melted and sold, there should be some evidence of melting. No evidence has been produced to establish it. We cannot, therefore, accept assessee's explanation that the sale proceeds credited in the accounts on 30-11-1945 represent the sale proceeds of ornaments belonging to the lady. The nature and source of the gold which was sold has not thus been established by the assessee. There is thus an unexplained increase in the assessee's wealth during the previous year by ₹ 22,940/-. The only inference that can be drawn is that it represents the assessee's secreted profits from busines....