| Case ID |
37122f3b-bd10-499b-a5a1-d7fe4925a61e |
| Body |
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| Case Number |
IT REFERENCE No. 475 OF 1969 |
| Decision Date |
Jan 10, 1971 |
| Hearing Date |
|
| Decision |
The Income-tax Appellate Tribunal determined that the mere non-acceptance of the assessee's explanation did not amount to proof of concealment of income. The Tribunal ruled that there was no positive evidence to establish the guilt of the assessee, hence the penalty under section 28(1)(c) of the Income-tax Act, 1922 could not be levied. This decision underscores the principle that in the absence of sufficient evidence, penalties cannot be imposed merely based on discrepancies in accounts or non-accepted explanations. |
| Summary |
In the case of IT REFERENCE No. 475 OF 1969 before the Allahabad High Court, the core issue revolved around the imposition of a penalty under section 271(1)(c) of the Income-tax Act for alleged concealment of income. The assessee, a firm engaged in grain commission agency, had reported an income of Rs. 30,095. During assessment, the Income-tax Officer (ITO) discovered discrepancies between the stock accounts and the bank statements, leading to a determination of excessive pledging of goods. The ITO's findings and the subsequent penalties imposed were challenged, with the Tribunal ultimately ruling that mere discrepancies and non-accepted explanations do not suffice for penalties. The case emphasizes the necessity for concrete evidence when alleging concealment of income, reinforcing taxpayer rights and the principle of fair assessment. This ruling is significant for tax professionals and firms, highlighting the importance of maintaining accurate records and providing justifiable explanations for discrepancies. Taxpayers must be aware of their rights and the standards of evidence required for penalty imposition, ensuring compliance and transparency in financial reporting. |
| Court |
Allahabad High Court
|
| Entities Involved |
Not available
|
| Judges |
R.S. Pathak,
H. Swarup
|
| Lawyers |
Dr. R.R. Misra
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
Baboo Ram Lachman Dass
|
| Citations |
1972 SLD 474 = (1972) 85 ITR 405
|
| Other Citations |
CIT v. Anwar Ali [1970] 76 ITR 696 (SC)
|
| Laws Involved |
Income-tax Act, 1961,
Indian Income-tax Act, 1922
|
| Sections |
271(1)(c),
28(1)(c)
|