TMI Blog1991 (3) TMI 127X X X X Extracts X X X X X X X X Extracts X X X X ..... e that, for the assessment years 1962-63 and 1963-64, there appeared certain credits in the capital account as well as third parties' accounts in the books of the assesses. Some of these were added as the assessee's income from other sources. The additions were confirmed by the Tribunal. March I5, 1991 : These cash credits continued to appear as liabilities in the assessee's books in the subsequent years while filing his returns of net wealth for assessment years 1965-66 to 1968-69, the assessee disclosed his net wealth on the basis of the balance-sheets, i.e., without reducing the liabilities by such credits. However, the Wealth-tax Officer held that these liabilities were not real and represented the assessee's own moneys. Reference was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the impugned order, the Tribunal accepted the assessee's explanation and held that the provisions of section 18(1)(c) were not attracted. Penalties imposed by the Inspecting Assistant Commissioner were set aside. The short question in this reference is whether the fact that the nature and source of certain cash credits was held not to have been satisfactorily explained and the amount represented by them was treated as the assessee's income from undisclosed/other sources for assessment years 1962-63 and 1963-64 and the further fact that, in the subsequent wealth-tax proceedings, the liabilities representing those cash credits were added back to the wealth of the assessee on the basis of a letter written by the assessee's income-tax represe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urate particulars in respect of the source and that the disputed amount was a revenue receipt, penalty could not be imposed. No doubt, the word "deliberately" occurring in section 28(1)(c) does not now occur in section 18(1)(c). However, the omission of that word, in our view, does not make any material difference inasmuch as when a person is charged with concealment, it has got to be a conscious or wilful act on his part. In the present case, the additions to income in the income-tax assessments were made by treating the assessee's evidence to be unsatisfactory. Therefore, for the purpose of income-tax proceedings, the addition would certainly not amount to concealment under the undiluted provisions of section 271(1)(c) or section 28(l)(c) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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