Law:

Section:

Section 271(1)(c) of the Income-tax Act, 1961 - Penalty - For concealment of income - Assessment year 1991-92 - During course of assessment proceedings, assessee was not able to offer any satisfactory explanation for certain sum, as surrendered by it, in regard to its source - On being questioned, he submitted that he was not aware of his tax affairs and had surrendered said amount for taxation to buy peace and avoid further litigation - Unable to get any proper explanation from assessee, Assessing Officer added amount to assessee's income on ground that surrender was made only when assessee was confronted - Assessing Officer also imposed penalty under section 271(1)(c) for concealment of that income - On appeal, Commissioner (Appeals) deleted penalty holding that surrender was voluntary - On appeal, Tribunal affirmed finding of Assessing Officer - Whether finding of fact recorded by Assessing Officer and affirmed by Tribunal could not be interfered in appeal before High Court - Held, yes - Whether no question of law, much less substantial question of law arose out of Tribunal's order for consideration of High Court - Held, yes FACTS The assessee filed his return declaring net income. Subsequently, the case was taken up for scrutiny under section 143(3) with the approval of the competent authority and notices were issued to the assessee. During the assessment proceedings, the assessee surrendered certain sum, but, was not able to offer any satisfactory explanation in regard to its source. On being questioned, the assessee submitted that he was not aware of his tax affairs, and had surrendered said amount to be treated as his income to buy peace and to avoid further litigation. Unable to get any proper explanation from the assessee, the Assessing Officer accepted the offer and made an addition. The Assessing Officer also initiated penalty proceedings under section 271(1)(c). On appeal, the Commissioner (Appeals) partly allowed the same. However, in regard to initiation of proceedings under section 271(1)(c), the Commissioner (Appeals) observed that since surrender was made during the course of assessment proceedings, it could not be said that the department had…

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