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TMI Blog1990 (12) TMI 143X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the aforesaid capital gain arose on the sale of jewellery for Rs. 24,950. He also produced a photostat copy of the purchase vouchers of M/s. Gian Chand Kapoor & Sons, 1228, Kacha Bagh, Chandni Chowk, dated 11-9-80. His submission before the assessing officer was that the jewellery had been purchased as well as sold during the previous year and also offered that short-term capital gain may be assessed in the hands of the assessee. It was also pointed out to the assessing officer that there was an account known and styled as "purchase for daughter's marriage" account in which the opening balance was of Rs. 22,500 and this account was squared up by showing to sale proceeds at Rs. 24,950 and the profit of Rs. 2,450. The submission was that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alty proceedings till the disposal of quantum appeal. The assessing officer noted the fact that the assessee's appeal had since been dismissed and the addition confirmed. He accordingly imposed a penalty of Rs. 12,500. 4. The assessee appealed to the Commissioner of Income-tax (Appeals) and in the statement of facts attached to the penalty appeal the following facts were reiterated : "The jewellery of Rs. 24,950 was sold in the year under consideration. The money was lying under the head 'purchases for daughter's marriage'." Commissioner of Income-tax (Appeals) confirmed the order of the Income-tax Officer. The assessee has now come up in second appeal before us. 5. Shri Ganesan, the learned counsel for the assessee, took us through the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... el, since concealment had not been established, there was no justification for levy of penalty under section 271(1)(c) of the Act. 6. The learned Departmental presentative, on the other hand, the addition of Rs. 24,950 was made precisely because the sale had been accepted to genuine, but since the assessee had failed to prove the source of acquisition of jewellery the addition had rightly been made. It was submitted that in the assessment proceedings the assessee's stand all along up to the Tribunal had been that a sum of Rs. 22,500 was lying with the assessee in the form of cash and that the jewellery had been purchased in the year relevant to the assessment year 1981-82 and sold in the same assessment year. It was pointed out that even i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed before the first appellate authority in quantum appeal the same position was reiterated. The same facts were affirmed before the Tribunal in the statement of facts. In the penalty appeal also the assessee submitted the same facts before the first appellate authority. So far the stand of the assessee was that a sum of Rs. 22,500 was lying in the form of money with the assessee though in a different account and with the help of that money the assessee had purchased the jewellery during the year relevant to assessment year 1981-82 and the same was sold also in the same assessment year. Before the assessing officer, the learned counsel for the assessee had even offered a sum of Rs. 2,450 to be assessed as short-term capital gains. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de because of the changing stands taken at different times. Upto the stage of penalty proceedings before the first appellate authority the stand of the assessee has been that a sum of Rs. 22,500 was lying in the form of cash with the assessee in a particular account. Now the explanation before us is that it was not cash which was lying with the assessee, but the jewellery. This stand is also not supported by any evidence. The explanation submitted by the assessee in the background of the above facts cannot be said to be bona fide. 9. We, therefore, hold that having regard to all facts and circumstances of the case and the legal position discussed above, penalty of Rs. 12,500 was rightly confirmed by the first appellate authority. 10. In t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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