Law:

Section:

Section 143 of the Income-tax Act, 1961 - Assessment - Additions to income - Assessment year 1959-60 - Assessee-firm's accounts showed cash credit in name of one 'R' who was a cashier of a cooperative society- R, in his statement before ITO explained that after withdrawing amount from society, for giving loans to agriculturists, he deposited money with assessee-firm for safe custody - Account books of society showed that 'R' could not have deposited amount with assessee as was alleged - It was found that he had withdrawn amount on 11-7-1958 and had disbursed same by way of loans amongst agriculturist within a week thereafter - Entries with regard to disbursement as loans made in account books of society by 'R' in his own hand belied version of assessee that he took money on different dates between 16-7-1958 and August, 1958 - Whether Tribunal's finding that said sum was not deposited by 'R' but was brought into books by partners of firm themselves, was a finding of fact based on material on record and legitimate inferences which could be drawn from facts found - Held, yes - Whether, therefore, cash credit found in books in R's name was rightly included as income of assessee from undisclosed sources - Held, yes Section 271(1)(c) of the Income-tax Act, 1961 [Corresponding to section 28(1)(c) of the Indian Income-tax Act, 1922] - Penalty - For concealment of income - Assessment year 1959-60 - In addition to facts stated under head 'Income from undisclosed sources' ITO levied penalty under section 28(1)(c) of 1922 Act - Tribunal cancelled levy of penalty on account of department's failure to discharge onus to establish that it was not a genuine deposit and in absence of evidence to connect cash credit in question with any undisclosed income of assessee - Whether case for imposition of penalty has to be found on material on record and it is essentially a question of fact whether in a certain case penalty is called for or not - Held, yes - Whether since in instant case Tribunal gave valid reasons in support of its order cancelling order of penalty, no question of law arose from its order - Held, yes FACTS For the assessment year 1959-60, the ITO found a sum as…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492