COMMISSIONER OF INCOME TAX Vs. JAYARAJ TALKIES

JUDGEMENT

(1.) THE Tribunal has given reasons for holding that the penalty is not leviable on the assessee. THE reasons given are that there was a dispute between the lessee and the lessor of the theatre which has resulted in the proceedings in court, that the statement relied on by the Income-tax Officer was not a statement obtained from the lessee in the presence of the lessor ; that the lessor had not been given an opportunity to cross-examine the lessee ; and that the repair work to the furniture had been carried out by the workers of one Madhava Rao and Sons, Secunderabad, at a time when those workers had spare time on account of insufficient work being available at that time.

(2.) THE Revenue contends that as the assessee-owner of the theatre who had derived income from leasing the same, had after filing a return claiming deduction of a sum of Rs. 4,125 and Rs. 16,348 towards building maintenance and furniture repairs respectively, himself volunteered to offer these sums as part of his income on account of the difficulty encountered by him in securing necessary vouchers and receipts. That conduct of the assessee according to the Revenue was by itself sufficient to show that there was concealment.