COMMISSIONER OF INCOME TAX Vs. RATTAN SINGH GREWAL

JUDGEMENT

(1.) QUESTION was referred to this Court for opinion arising out of ITA No. 231/Asr/1977 -78 for the asst. yr. 1968 -69 :

(2.) BRIEFLY , the facts are that the assessee left India in 1955 and was a British National living in England thereafter. For the assessment year in question, the assessee did not file return of income. When it came to the notice of the ITO that the assessee had made certain investments during the assessment year in question, the sources of which could not be besides amount lying in the bank, for which no satisfactory explanation was there. These additions were upheld by the found that the explanations furnished by the assessee to justify the investments made in the properties were not bona fide. Since the assessee had concealed particulars of his income, notice under s. 271(1)(c) of the Act was issued for levy of penalty. Finding the explanation given by the assessee to be totally unjustified, penalty of Rs. 32,680 was levied by

(3.) IN spite of the fact that the Tribunal in quantum proceedings had recorded a categoric finding to the effect that the investments made by the assessee not only remained unexplained but even the explanation furnished by the assessee was found to be false, upheld the additions. Whereas contrary to what was held in quantum proceedings by the Tribunal, by recording a contradictory finding that there was nothing with the Revenue to disprove the explanation furnished by the assessee that there were sufficient funds available with the assessee's father for investment, the Tribunal set aside the penalty.