COMMISSIONER OF INCOME TAX Vs. SATYAVATI SHARMA

JUDGEMENT

(1.) THIS is a reference made by the Tribunal referring for our answer the followed question of law :

(2.) THE facts briefly stated are that the assessee filed a return for the asst. yr. 1970-71 showing the total income of Rs. 16,339. THE ITO made an addition of Rs. 18,000 which represented to amount deposited in the name of the assessee with Shram Saw Mills. THE assessee could give no explanation about this amount. This addition was maintained in appeal by the AAC in the assessment proceedings. THEre was no further appeal. In the penalty proceedings, the ITO imposed a penalty of Rs. 18,000 under s. 271 (1)(c) of the IT Act, 1961. THE AAC, in appeal, held that the charge of concealment was not established and deleted the penalty. In further appeal before the Tribunal, it was contended behalf of the Department that the Explanation to s. 271(1)(c) was applicable and a presumption arose that the assessee was guilty of concealment, This argument was negatived.