- (1.) Present appeal under Section 260A of the Income Tax Act 1961 (in short hereinafter referred as the Act) preferred by the revenue is against the tribunal's order relates to assessment year 2004-05. Controversy relates to a proceeding for penalty under Section 271(1)(c) of the Act. Facts:
(2.) Assessee filed the return of the income on 14.10.2005 regarding total amount of Rs. 1,17,600 which was processed under Section 143(1) of the Act. The case was selected for scrutiny under the guidelines for the Financial year 2005-06. Notice under Section 143(2) and 142(1) of the Acts were issued on 19.10.2006. In response to which counsel for assessee appeared to defend the cause of assessee.
(3.) Assessee has shown income from salary from M/s Ramjee Distributors (P) Ltd. of Rs. 12,000/- after claiming standard deduction, net income was disclosed Rs. 7,200/-. The income from other source was disclosed at Rs. 1,22,394/-. The assessee has also shown long term capital gain on sale of shares of Sri Niwas Leasing and Finance Ltd. A number of shares sold on 15.5.2003 was 23,000 and the sale proceed was disclosed was at Rs. 25,25,400/-. Further 27,000 shares were sold on 21.4.2003 and the sale proceed was disclosed at Rs. 29,64,600/-. He has also constructed a house on plot No. 71-72, Chandganj Garden, Lucknow. By an order-sheet entry dated 30.11.2006 assessee was asked to furnish name of stock exchange through which share was purchased and sold along with rate of shares of the stock exchange on date of purchase and sale. Assessee has constructed house between financial year 2001-02 to 2004-05 with investment of Rs. 56,74,567/-.;