COMMISSIONER OF INCOME TAX Vs. GYAN PRAKASH

JUDGEMENT

(1.) THE question for our consideration is whether the Tribunal was right in holding that the penalty under Section 271(1)(c) of the I.T. Act, 1961, was not exigible.

(2.) FOR the assessment year 1964-65, the assessee filed a return on 3rd January, 1969, declaring a total income of Rs. 3,700. During the course of assessment proceedings the ITO found that deposits totalling Rs. 9,400 existed in the assessee's account books. These were in the accounts of Gyan Prakash, Sushil Kumar and Ahmad Khan. The officer required the assessee to prove the genuineness of these deposits and also to furnish the addresses of these persons. The assessee did not respond. He did not produce any evidence or furnish the required addresses. The ITO concluded that these deposits were not genuine and he added them as income from undisclosed sources. The assessment was passed on a total income of Rs. 15,000 under Section 144 of the I.T. Act, 1961.

(3.) THE assessee went up in appeal. THE Tribunal quashed the penalty order. THE Tribunal observed :