1981 (10) TMI 69

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....use. Against his declared income of Rs. 8,000 assessment came to be framed at Rs. 35,940, in which main addition of Rs. 25,000 has been made and accepted by the assessee. In his assessment for the year 1973-74, an addition of Rs. 25,000 was made on account of introduction of cash shown in the statement of affairs submitted during the course of assessment proceedings. A copy of such statement has been submitted at page 3 of the assessee's paperbook. The assessee explained source in his letter dt. 29th October, 1975, which is given at pages 4 and 5 of the paperbook. The explanation was that the assessee had amounts lying with him which could be directly related to intangible additions made in the earlier years and a sum of Rs. 50,959 was stat....

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....eld by the AAC in the first appeal. 5. It has been argued on behalf of the assessee that there has been no concealment of income on the part of the assessee when he like in the earlier years, filed his statement of affairs and cash of Rs. 25,000 was clearly projected from such statement. Sh. D.K. Gupta very forcefully argued that it was merely a case where the assessee's explanation was found to be unsatisfactory and the benefits of intangible addition, though given in the earlier years, came to be denied. Further, he submitted that there is no finding recorded in the assessment order that there was concealment of income on the part of the assessee. He argued, such finding simply could not have been recorded because of protective additio....

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....e's inability to satisfactorily explain his statement of affairs filed certainly and rightly entitled the assessing officer to subject to tax Rs. 25,000 as unproved excess cash but the penalty u/s. 271(1)(c) of the Act is a different matter. The assessee did offer a plausable explanation for cash of Rs. 25,000 though the ITO was well within his right to reject the explanation as not conclusive. The assessee has been subjected to tax from the asst. yr. 1955-56 and the following graphical chart would indicate the declared and the assessed income upto the year 1970-71: Asst. yr. Income declared Income assessed. 1955-56 2,000 7,500 1956-57 2,000 7,500 1957-58 2,000 7,500 1958-59 2,400 6,834 1959-6....