Law:

Section:

Section 271(1)(c) of the Income-tax Act, 1961 - Penalty for concealment of income - Assessment year 1987-88 - During course of assessment proceeding, assessee surrendered certain amount on a condition that no penalty and prosecution proceedings would be initiated against it - Assessing Officer, however, made an addition and imposed penalty under section 271(1)(c) holding that assessee had introduced its own money in names of bogus persons as creditors and later on surrendered same in its revised return - On appeal, Commissioner (Appeals) deleted penalty holding that assessee had been able to establish identity of creditors and source of their income; and that department had failed to prove that assessee had deliberately furnished inaccurate particulars of income or filed an incorrect return - On appeal, Tribunal confirmed order of Commissioner (Appeals) - Whether since findings of Commissioner (Appeals) and Tribunal on issue of source of income of creditors, etc. were pure findings of fact which had been recorded on a correct appreciation of evidence, no substantial question of law arose for consideration of High Court - Held, yes FACTS During the course of the assessment proceedings, the assessee surrendered certain amount stating that he wanted to purchase peace with the department subject to the condition that there would be no penalty and prosecution. The Assessing Officer did not accept the surrender and finalised the assessment by making addition to his income as income from undisclosed sources. He also imposed penalty under section 271(1)(c) by holding that the assessee had introduced its own money in the names of bogus persons as creditors and later on surrendered the same in the revised return. On appeal, the Commissioner (Appeals) deleted the penalty holding that the assessee had been able to establish the identity of the creditors and the source of their income; that there was nothing in the statement of middleman to cast doubt on the genuineness of the transaction relating to cash credits; and that the department had failed to prove that the assessee had deliberately furnished inaccurate particulars of the income or filed an incorrect return. On…

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