1982 (12) TMI 22

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....isions of section 27](1)(c) of the, Income-tax Act, 1961, were not attracted in this case and in that view cancelling the order of penalty made under section 271(1)(c) of the Income-tax Act, 1961 ? " The facts of this case are as follows : The assessee had filed originally a return on June 28, 1963, declaring an income of Rs. 45,251. The ITO noticed cash credits aggregating to Rs. 35,000 which were claimed to be a loan taken from one Sri Sudhangshu Mandal. The assessee was required to prove the source of the credits and summons under s. 131 of the I.T. Act, 1961, was also issued in this connection. The assessee later requested the ITO to issue summons to another address which was stated to be a new address of the creditor concerned, b....

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....e assessee has submitted a revised return showing the amount of loan of Rs. 35,000 as income from other sources, as the same cannot be proved, with a prayer that no penalty may be levied. It is evident from the foregoing that the surrender by the assessee of the amount of cash credits for taxation in the revised return was because he was unable to prove by satisfactory evidence his claim of the amount being loan taken from the creditor concerned and not because he admitted the amount to be his undisclosed income. In the circumstances 'we hold that mere inclusion of the amount in the revised return by the assessee for his inability to prove his claim, does not amount to his admission of the amount as his income and his having concealed the s....