1982 (1) TMI 77

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..... Rs. 8,600 maintained for the assessee's investment in a shop. The assessee had admittedly invested Rs. 11,000 in purchasing the shop. The assessee had given some explanation and it was stated that a part of the investment had come out of earlier year's drawings saved by the assessee and the another part was out of this year's receipts. The assessee was having his truck business and the income from .....

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..... current receipts of truck business. A penalty of Rs. 8,600 was imposed. The AAC has upheld the imposition of penalty. 3. It is submitted before us that in this case the explanation given by the assessee had been rejected. He pointed out that the assessee had been running a truck business from 1968 and it was out of the savings from that truck business that the investment for this shop had come. .....

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..... y to penalty proceedings and for this reliance was placed on the decision of the Karnataka High Court in the case of Jewels Paradise(1975)101 ITR 265 (Kar).He therefore, submitted that this was not a fit case for imposition of penalty. 4. The Deptl. Rep., on the other hand, submitted that the explanation given by the assessee had been rejected by the Tribunal and it has been held that the assess .....

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..... ion that the amount represented the assessee's income, it being not enough for the purpose of penalty that the amount has been assessed as income. It was also required that circumstances must show that there was conscious concealment or conscious furnishing of inaccurate particulars on the part of the assessee. The Explanation to s. 271(1)(c) does not make the assessment order conclusive evidence .....

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..... ng Authorities. In out opinion, penalty cannot be levied only on the basis of rejection of assessee's explanation. In the penalty order, there is no further finding regarding the Act of concealment or the investment representing assessee's income of this year. We, therefore, hold that the penalty order must be cancelled. We, therefore, cancel the order of penalty and allow the assessee's appeal.

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