Law:

Section:

Section 271(1)(c) of the Income-tax Act, 1961 - Penalty - For concealment of income - Assessment year 1971-72 - While completing assessee's assessment, ITO included a sum of Rs. 1 lakh in total income of assessee - Assessee claimed that amount related to encashment of a raffle ticket, which secured first prize - On investigation and collection of independent evidence authorities concluded that price winning ticket actually belonged to S and that assessee bad purchased ticket after it won prize and, therefore, amount of prize represented assessee's secret income undisclosed to department - Thereupon beside adding Rs. 1 lakh in total income, penalty was also imposed on assessee - Whether imposition of penalty was justified - Held, on facts, yes Facts The assessee derived share income from a firm, income from property and interest on securities, etc. In the assessment year 1971-72, the assessee filed a return declaring a total income of Rs. 33,423. While completing the assessment, the ITO included a sum of Rs. 1 lakh in the total income of the aesessee. The amount included represented a cash credit and the assessee claimed that the amount related to the encashment of a raffle ticket which secured the first prize in the draw. On investigation, the authorities concluded that the prize winning raffle ticket actually belonged to S, a worker in a hotel and that the assessee did not purchase the ticket, but it was secured by him after he won the prize. Thereupon a sum of Rs. 1 lakh was added in the total income of the assessee from undisclosed sources and penalty of Rs. 1 lakh under section 271(1)(c) was also imposed. Aggrieved by this, the assessee filed an appeal before the Tribunal. The Tribunal found that independent evidence collected by the ITO from several sources, clearly established that one S had purchased the prize winning ticket and had also won the prize and that the assessee who encashed the prize winning ticket was not in a position to establish the purchase of the ticket and, therefore, it was not a mere case of the explanation offered by the assessee having been disbelieved, but the uncontradicted circumstantial evidence was such that it established…

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