| Case ID |
1a15309b-5da9-4e09-93c9-36f81ecf6108 |
| Body |
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| Case Number |
IT REFERENCE No. 182 OF 1987 |
| Decision Date |
Apr 26, 2007 |
| Hearing Date |
|
| Decision |
The court held that the imposition of penalty by the Assessing Officer was justified due to the assessee's failure to provide an acceptable explanation for the discrepancy between declared and assessed income. The Tribunal's cancellation of the penalty was overturned, affirming that the presumption of concealment under the relevant explanation warranted penalty proceedings. The court also noted that the Tribunal's observations regarding disbelief did not negate the finding that the contentions raised by the assessee were false. The decision clarified the burden of proof on the assessee and upheld the penalties for the assessment years 1970-71 to 1975-76, while acknowledging that the provisions for the assessment year 1977-78 had changed, justifying the cancellation of penalties for that year. |
| Summary |
This case revolves around the interpretation of Section 271(1)(c) of the Income-tax Act, 1961, specifically regarding penalties for concealment of income. The Allahabad High Court addressed the presumption that arises when the declared income is less than 80% of the assessed income and the burden placed on the assessee to rebut this presumption. The court found that the Tribunal's cancellation of penalties was unjustified, emphasizing the importance of the assessee providing a credible explanation to avoid penalties. This decision is crucial for understanding tax compliance and the legal standards for income declaration, impacting both taxpayers and tax authorities. Keywords such as income tax, penalty for concealment, legal standards in tax law, and Tribunal decisions are trending and relevant for those researching tax law cases. |
| Court |
Allahabad High Court
|
| Entities Involved |
Not available
|
| Judges |
SUSHIL HARKAULI,
AJAI KUMAR SINGH
|
| Lawyers |
Shubham Agrawal
|
| Petitioners |
Not available
|
| Respondents |
Satya Narain
|
| Citations |
2009 SLD 2490,
(2009) 312 ITR 334
|
| Other Citations |
CIT v. University Printers [1991] 188 ITR 206,
CIT v. Dharam Pal Singh [1992] 193 ITR 769
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
271(1)(c)
|