TMI Blog1970 (2) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... uestion referred to us at the instance of the department is: "Whether, on the facts and in the circumstances of the case, and having regard to the fact that no inflation in purchases had been established the Tribunal ought to have sustained a penalty under section 28(1)(c) on the ground that cash credits to the tune of Rs. 24,710 remained unexplained, and had been kept in view in estimating the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 24,710 credited in the suspense account of the assessee-firm. Taking into account these facts the assessee-firm was assessed on a total income of Rs. 79,296. The Income-tax Officer also proceeded to levy penalty. Certain other proceedings questioning the jurisdiction of the department to levy penalty on the assessee-firm which was dissolved were taken. It is not necessary for the purpose of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y it was not correct and held that the purchase prices were not so inflated. It, however, was of the view that the cash credits to the tune of Rs. 24,710 remained unexplained. But a mere unsatisfactory nature of the explanation regarding the cash credits, in the opinion of the Tribunal, did not justify the penal action against the assessee. In the result, the appeal preferred by the assessee was a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for including the said items as part of the income of the assessee-firm, for the burden is upon the assessee to explain all the cash credits, whether that by itself could form the basis for imposition of penalty under section 28(1)(c) of the Act, is a matter which must depend on the facts and circumstances of each case. In the instant case, the Tribunal, on a review of the evidence, found that one ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... naccurate particulars of such income is always a question of fact. On the particular facts and circumstances of this case, we are of the opinion that the Tribunal was right in holding that the failure to explain the cash credits by itself was not sufficient to impose penalty under section 28(1)(c) of the Act. The question is answered accordingly in favour of the assessee. There will be no order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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