Assessee filed return showing income at Rs. 8860.  Assessing Officer accepted return and completed assessment.  Subsequently Assessing Officer having found that assessee had construed a building during relevant assessment year without disclosing source of investment reopened assessment. Thereupon assessee filed second return showing a loan of Rs. 25000 taken from a party and adding said amount to Rs. 8860 (as shown in first return) disclosed income at Rs. 33,860.  Assessing Officer assessed income at Rs. 74510. Addition was affirmed by the CIT(A) and Tribunal. The Assessing Officer filed a complaint against assessee alleging that she had committed offences punishable under sections 276C and 277  Trial Court acquitted assessee  on the ground that  penalty proceedings were dropped. On appeal against the acquittal dismissing the appeal the Court held that in view facts that in instant case penalty proceeding was initiated against assessee for concealment of income but it was subsequently dropped and further there was no evidence on record to establish that assessee made deliberately or intentionally false statement, there was not any error with order of trial Court acquitting assessee.  (AY. 1980-81)