Law:

Section:

Section 256, of the Income-tax Act, 1961 - Reference - General - Whether in absence of any specific Question raised by Commissioner challenging findings of tact, Court has to proceed on basis of findings recorded by the Tribunal - Held, yes Explanation to section 271(1)(c) of the Income-tax Act, 1961 [as it stood in the year 1972] - Penalty - For concealment of income - Whether where while imposing penalty IAC does not rely on Explanation to section 271(1)(c) burden is on department to establish that assessee is guilty of concealment - Held, yes - Whether in absence of any positive finding that assessee is guilty of any fraud or wilful neglect, penalty can be sustained under section 271(1)(c) - Held, no Facts The assessee, a HUF, had filed a return of income of Rs. 17,122 for the relevant assessment year which was assessed accordingly. Subsequently, the ITO received information that the assessee had received various bank drafts in the names of its employees and one member of the HUF, namely, S, and had not recorded these transactions in its account books. Consequently, he issued a notice under section 148 to the assessee. In response to the said notice, the assessee filed a return showing the same income as originally returned by it contending that the amount received by the employees and one of the members of the HUF, in fact, belonged to S in his individual capacity and the said amount did not belong to the HUF. This fact was admitted by S also. The ITO, however, did not believe the explanation furnished by the assessee and by taking an initial investment made outside books at Rs. 10.000 he made an addition of Rs. 17,500 in the total income of the assessee. The ITO also assessed S on the aforesaid amount of Rs. 17,500 on protective basis in his individual capacity and initiated proceedings under section 271(1)(c). The assessee filed an appeal before the AAC and during its pendency agreed to the aforesaid addition of Rs. 17,500. Accordingly, the same addition made in the individual assessment of S was deleted and penalty proceedings in his individual case were also dropped by the ITO. However, the ITO issued a notice under section 271(1)(c) to the assessee and…

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