KISHAN GUPTA Vs. INCOME TAX OFFICER
LAWS(IT)-1989-8-18
INCOME TAX APPELLATE TRIBUNAL
Decided on August 16,1989

Appellant
VERSUS
Respondents

JUDGEMENT

M.C. Agarwal, Judicial Member - (1.)THESE are four second appeals by the assessee against the levy of penalty under Section 271(1)(c) for assessment years 1976-77,77-78,78-79 & 79-80.
(2.)We have heard the learned counsel for the assessee and the learned Departmental Representative and have perused the material placed before us.
The assessee is a businessman who was running a sweet shop in the name of Bengal Sweet House at Rajouri Garden, New Delhi. On 1-11-1978, i.e., immediately after Diwali, the heyday for Halwais, the Income-tax Department raided assessee's shop and residential house. The following material things were recovered: -

(1) Cash amounting to Rs. 68,766

(2) F.D.Rs worth Rs. 70,000

(3) Gold jewellery 1030 gms.

(3.)DURING the course of the search the assessee was examined by the authorised officer and in his statement, a copy of which has been placed by the assessee's counsel at pages 17 to 19 of the 2nd paper book, the assessee told She authorised officer that at his house about Rs. sixty thousand would be available, out of which about Rs. 38,700 is the cash balance of his shop. In proceedings under Section 132(5) the assessee explained that the cash consisted of Rs. 38,766.45 being the closing cash balance of the business Bengal Sweet House as on 31-10-1978, and Rs. 30,000 belonged to his mother Smt. Radha Devi. The lady was also living in the same house and during the search, a will dated 1st of August, 1976 purporting to be executed by her was also found. By this will the lady claimed to own Rs. 30,000 in cash and 400 gins, of jewellery. Regarding jewellery the explanation offered by the assessee was that 400 gms. of jewellery belonged to Smt. Radha Devi, the mother of the assessee and the rest belonged to Smt. Maya Gupta, the assessee's wife.


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