TMI Blog1981 (11) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... the status of an individual. The relevant assessment years are 1967-68 and 1971-72. Apart from professional income, the assessee owned a house. In the course of assessment proceedings, the ITO noticed that the assessee was constructing a house. When called upon, the assessee furnished an estimated expenditure of Rs. 35,000 for the construction. The ITO, however, estimated the cost of construction to be Rs. 62,004 and the difference of Rs. 27,004 was taken as unexplained investment, and applying the provisions of s. 69 of the Act, he spread over this amount in five assessment years under the head " Unexplained income from other sources ". He also initiated a proceeding under s. 271(1)(c) of the Act, and called upon the assessee to furnish h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would be dropped. The assessee who was a practising advocate accepted the representation of the ITO and in good faith complied with the direction. The postal cover containing the notice for 30th March, 1974, was produced and it transpired that it had endorsements of April 8, 1974, and April 9, 1974, to the effect that the assessee was absent. Before the Tribunal it was also contended that though the assessee was an advocate he was not conversant with taxation law and in good faith had acceded to the request of the ITO. The assessee had also explained before the Tribunal that an old house had been reconditioned and the entire thing was not a new construction. It was pointed out that the assessee had disclosed a larger area than found by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunal, to hold that the assessee for his conduct should be exposed to the ravages of penalty. We are inclined to agree with the representation of the counsel for the assessee that the matter has been disposed of by an appreciation of facts as disclosed and since on the evidence a factual conclusion has been reached, we do not think we can accept the contention of the revenue that any question of law, much less the question as suggested, arises out of the appellate order of the Tribunal. We would, accordingly, decline to answer the references by saying that the Tribunal had reached a finding of fact and no question of law arises. Parties are directed to bear their own costs of these references. PATNAIK J.-I agree. - - TaxTMI - TMITa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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