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Section 143 of the Income-tax Act, 1961 - Assessment - Additions to income - Assessment year 1946-47 - Assessee was HUF - Tribunal treated income from business carried on by members as income of family and also levied penalty under section 28(1) of 1922 Act - It was found that family funds had not been used at all and there was nothing to indicate that family credit was at all used - Further, there were definite statements of members to effect that respective transactions were not of family - Whether burden is not on assessee-family to show that earnings made by some of its members did not belong to family but it was for Department, which wanted to treat those earning as those of family, to establish that they were not earnings of individual members of family - Held, yes - Whether conjectures were not inferences and could not take place of evidence - Held, yes - Whether Tribunal had based itself, not on evidence but on conjectures and there was no legal evidence to hold that profits were earned by assessee family and not by its members - Held, yes Section 271(1)(c) of the Income-tax Act, 1961 [corresponding to section 28(1) of Indian Income-tax Act, 1922] - Penalty - For concealment of income - Assessment year 1946-47 - Whether on facts stated under head 'Assessment - Additions to income' there was no evidence to hold that there had been concealment and deliberate furnishing of inaccurate particulars of income within meaning of section 28(1)(c) of 1922 Act and, hence, levy of penalty was not justified - Held, yes FACTS The assessee, an HUF was doing business in cotton. 'N' 'M' and 'J' were the members of the HUF. While examining the accounts of the assessee for the Assessment year 1946-47 the ITO noticed that two transactions of supply of cotton were shown as having been entered into by 'N' and 'M' through a firm 'BK';. The profit in the transaction by 'N' was shown in his personal account while the profit in other transaction was credited to the account of one 'V' an employee of the firm 'BK'., The ITO treated these profits as belonging to the family. The appeals were dismissed by the AAC and the Tribunal. The Tribunal held that the assessee had not proved by…

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