Law:

Section:

Section 271(1)(c), read with section 256(2) of the Income-tax Act, 1961 - Penalty - For concealment of income - Whether where assesses had admitted suppression of certain income in reassessment proceedings and did not disown or retract from this statement at stage of penalty proceedings, it was not necessary for revenue to make any independent enquiry to find out as to whether there was, in fact, any suppression or not, and revenue was competent to levy penalty under section 271(1)(c) on basis of above admission - Held, yes Section 256(2) of the Income-tax Act, 1961 - Reference - Question of fact Whether in view of facts stated under the head 'penalty - For concealment of income', any question of law arose from tribunal's order confirming levy of penalty - Held, no FACTS In the original income-tax assessment for the relevant assessment year, the assessee did not disclose the real cost of reconstruction of his residential house. Subsequently, it came to light during the wealth-tax assessment that the house had been undervalued. Therefore, income-tax reassessment proceedings were started in which the assessee himself admitted that the house had been undervalued and that the sum spent on reconstruction had come from his business income. This was contrary to the statement made by him in the original return filed by him that the entire cost of reconstruction came from his wife's grandfather. Based on the said admission made by the assessee, the ITO made an addition to the assessee's income for the relevant assessment year. After completion of the reassessment, the ITO initiated proceedings for the levy of penalty and issued a show-cause notice to the assessee. The assessee, however, did not give any reply ; nor did he come forward with any statement disowning or explaining the admission made by him at the stage of the reassessment proceedings. The ITO, therefore, levied penalty on the ground that there had been a non-disclosure of business income and that the said non-disclosure had been admitted by the assessee. The AAC and the Tribunal also confirmed the ITO's order. On application under section 256(2), the assessee contended that notwithstanding the admission…

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