Law:

Section:

section 271(1)(c) of the income-tax act, 1961-penalty-for concealment of income-as assessee failed to prove a cash credit by producing creditor before ito, he filed a revised return showing amount of said cash credit as income from other sources with prayer that no penalty under section 271(1)(c) be levied-whether assessee could be treated as having admitted concealment for purposes of imposition of penalty-held, on facts, no Facts On noticing certain credits in the assessee's books, the ITO required the assessee to prove the source of the same and also issued summons to the alleged creditor at the request of the assessee. However, unable to secure the attendance of the creditor to substantiate his contention regarding the source of the credit, the assessee submitted a revised return showing the impugned amount of cash credit as his income from other sources. The ITO, thereafter, completed the assessment on the basis of this return and initiated penalty proceedings under section 271(1)(c). The IAC levied the penalty. On appeal, the Tribunal concluded that it was evident from the conduct of the assessee that the surrender by the assessee of the amount of cash credit for taxation in the revised return was because he was unable to prove by satisfactory evidence his claim of the amount being loan taken from the creditor concerned, and not because he admitted the amount to be his undisclosed or concealed income and, hence, the levy of penalty under section 271(1)(c ) was not justified. On reference: Held It is well-settled that the onus of proving that the assessee concealed the particulars of his income or failed to disclose his income is on the revenue. In view of the facts and findings recorded by the Tribunal, it was evident that the assessee submitted the revised return showing the impugned cash credits as income from other sources as the same could not be proved, with a prayer that no penalty might be levied. Thus, the admission, if any, was a conditional admission and could not be relied upon for imposing penalty as an unconditional admission. Again, the finding of the Tribunal had not been challenged, either for perversity or for lack of evidence.…

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