| Case ID |
15617852-aba2-4a7e-b5c5-81086dfee655 |
| Body |
View case body. Login to View |
| Case Number |
TAX CASE No. 238 OF 1968 (REFERENCE No. 81 OF 1968 |
| Decision Date |
Aug 20, 1974 |
| Hearing Date |
|
| Decision |
The Madras High Court upheld the decision of the Inspecting Assistant Commissioner (IAC) and the Tribunal regarding the levy of penalty under section 271(1)(c) of the Income-tax Act, 1961 for concealment of income. The court found that the evidence presented was insufficient to support the assessee's explanation regarding the cash credit entries in his account books. The court determined that the amounts represented undisclosed income and confirmed the validity of the penalty imposed. The decision emphasized that mere rejection of an explanation does not suffice to prove concealed income unless the authority can demonstrate that the explanation is false. The court concluded that the penalty of Rs. 5,000 was valid based on the findings of the IAC and the Tribunal. |
| Summary |
This case revolves around the assessment year 1961-62, where Kandaswami Pillai faced penalty proceedings due to cash credit entries in his books. The Income-tax Officer (ITO) concluded that these represented income from undisclosed sources after examining witnesses who claimed to have lent money to the assessee. The IAC rejected their evidence, stating that they had no means to lend such amounts, which led to the imposition of a penalty under section 271(1)(c) of the Income-tax Act, 1961. The Tribunal affirmed this decision but reduced the penalty amount. The High Court ultimately upheld the Tribunal's ruling, stating that the assessee's explanation was not only unreliable but also false, thus validating the penalty. This case highlights the importance of credible evidence in tax proceedings and the implications of presenting false information to tax authorities. |
| Court |
Madras High Court
|
| Entities Involved |
Not available
|
| Judges |
G. RAMANUJAM,
V. RAMASWAMI
|
| Lawyers |
K. Srinivasan,
K. C. Rajappa,
V. Balasubrahmanyam,
J. Jayaraman
|
| Petitioners |
Kandaswami Pillai
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1977 SLD 1165,
(1977) 108 ITR 612
|
| Other Citations |
Not available
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
271(1)(c)
|