Law:

Section:

Section 271(1)(c) of the Income-tax Act, 1961 - Penalty - For concealment of income - Assessment year 1966-67 - For relevant assessment year, assessee filed return showing certain income - In assessment, ITO included certain amount in assessee's income being unexplained cash credit - IAC levied penalty under section 271(1)(c) - Tribunal, however, holding that mere addition of an item of cash credit in assessee's income did not itself justify imposition of penalty, set aside penalty order - On instant reference, it was seen that IAC had not recorded a finding that income returned by assessee was less than 80 per cent of income finally assessed - Moreover, before Tribunal point that assessee was liable to penalty because of Explanation to section 271(1)(c) did not appear to have been raised - Whether in absence of such a finding by Tribunal, Explanation to section 271(1)(c) could not be pressed into aid - Held, yes - Whether, High Court in advisory jurisdiction under section 256(1) could not record such a finding - Held, yes - Whether, consequently, order passed by Tribunal cancelling penalty under section 271(1)(c), was to be upheld - Held, yes FACTS For the relevant assessment year, the assessee filed a return showing certain income. Later on, he filed a revised return showing enhanced income. The ITO, however, determined the income at higher amount. In the assessment was included a sum being an unexplained cash credit. The ITO also initiated proceedings for levy of penalty under section 271(1)(c) and transferred the matter to the IAC. The IAC levied certain penalty. In the meantime, the assessee's appeal against the assessment was partly allowed. In the appeal against the penalty the Tribunal held that mere addition of an item of cash credit in the assessee's income did not itself justify the imposition of penalty on the ground of concealment of income and, as such, the penalty order was set aside. On reference : HELD According to the Explanation added in 1964, an assessee shall be deemed to have concealed his income or furnished inaccurate particulars thereof if the income returned by him turns out to be less than 80 per cent. of the income assessed minus the…

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