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Levy of penalty under section 271(1)(c) for alleged concealment of income based on difference in cost of construction estimation by Income-tax authorities and assessee's accounts. Analysis: The assessee completed construction of a house during the relevant assessment year, with the cost in the books at Rs. 32,275. However, the Income-tax Officer estimated the cost at Rs. 55,000, adding the difference as unexplained investment. The Appellate Assistant commissioner modified the estimate to Rs. 42,208. The Income-tax Officer imposed a penalty of Rs. 10,000 for alleged concealment of income, which was confirmed on appeal. The assessee contended that the penalty was unjustified, as the construction cost was supported by account entries and the difference was a matter of opinion. The Revenue argued for upholding the penalty, citing the explanation to section 271(1)(c) and case precedents. The Tribunal noted that the assessee's accounts were not challenged, and the authorities had made estimations without evidence of actual concealment. The burden of proof under the explanation to section 271(1)(c) was on the assessee, which was considered discharged by maintaining correct accounts. The Tribunal found no justification for the penalty under section 271(1)(c) or its explanation, as there was no evidence of fraud or wilful neglect by the assessee. The penalty was canceled, and the appeal was allowed.
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