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2015 (5) TMI 505 - AT - Income TaxPenalty levied u/s 271(1)(c) - unexplained assets - Held that:- So far the gold ornaments are concerned, the assessee has given the proper explanation for the source of gold ornaments in respect of each and every assessee. The Assessing Officer substantially accepted the assessee’s explanation and treated only a small part of the gold ornaments to be unexplained. Therefore, in our opinion, the assessee has given proper explanation in respect of the gold ornaments which is not found to be false or untrue, though the Assessing Officer accepted the assessee’s explanation partially on estimated basis. In the above circumstances, in our opinion, levy of penalty in respect of part of the gold ornaments which are treated as unexplained is not justified. However, the facts are different in respect of cash found and investments in other assets like KVP, NSC and SBI Bond. No proper explanation has been given in respect of cash found or the investment in KVP, NSC and SBI Bond. The only explanation for cash in hand was that it belongs to various family members and the savings is out of the withdrawal for household expenditure in the preceding year. We have seen that the withdrawal by the assessee in the preceding year is meager with which the assessee would be able to manage the household expenses only and would not be able to save much. No evidence has been given that the part of the cash belongs to the family members. The Assessing Officer has already given the credit on estimated basis in respect of some cash in hand. In view of above, we are of the opinion that in respect of cash in hand which is treated as unexplained and also the investments in KVP, NSC and SBI Bond, it cannot be said that the assessee was able to substantiate his explanation. The explanation given was general, without any supporting evidences. In view of above, we are of the opinion that the levy of penalty u/s 271(1)(c) in respect of unexplained jewelry was not justified while the levy of penalty in respect of unexplained cash and investments in KVP, NSC, SBI Bond was justified. - Decided partly in favour of assessee.
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