| Case ID |
3d6b4e46-d4c9-4550-846d-07601ff06144 |
| Body |
View case body. Login to View |
| Case Number |
IT REFERENCE No. 66 OF 1967 |
| Decision Date |
Dec 17, 1976 |
| Hearing Date |
|
| Decision |
The penalty was rightly imposed on the assessee under section 271(1)(c) of the Income-tax Act, 1961, as the assessee had admitted the amount as income. The court held that the department had discharged the onus in the penalty proceedings based on this admission. The assessee failed to provide evidence that the admission was incorrect or made under coercion. Hence, the penalty was justified as the assessee did not demonstrate any valid grounds to contest the penalty imposed. |
| Summary |
In the case presented to the Bombay High Court, the primary issue revolved around the application of section 271(1)(c) of the Income-tax Act, 1961, concerning the penalty for concealment of income. The assessee, Western Automobiles (India), had accepted the addition of Rs. 90,000 as income during the assessment year 1959-60, which was later contested during penalty proceedings. The Income-tax Officer initiated penalties under section 271(1)(c) after discovering hundi loans in the firm's accounts that were deemed concealed income. The court emphasized that the burden of proof shifted to the assessee to refute the admission once it was established that they had acknowledged the amount as income. The ruling highlighted the importance of maintaining accurate financial records and the implications of admissions made during tax assessments. This case serves as a crucial reference for understanding the enforcement of penalties under tax law and the responsibilities of taxpayers to substantiate their claims regarding income disclosures. Keywords such as 'Income-tax Act', 'penalty for concealment', and 'financial records' are significant for SEO optimization. |
| Court |
Bombay High Court
|
| Entities Involved |
Not available
|
| Judges |
TULZAPURKAR,
DESAI
|
| Lawyers |
I.M. Munim,
S.P. Mehta,
R.J. Joshi,
V.J. Pandit,
R.L. Mukherjee
|
| Petitioners |
Western Automobiles (India)
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1978 SLD 371 = (1978) 112 ITR 1048
|
| Other Citations |
CIT v. Anwar Ali [1970] 76 ITR 696 (SC),
CIT v. Gokuldas Harivallabhdas [1958] 34 ITR 98 (Bom.),
CIT v. Net Ram Ram Swarup [1973] 88 ITR 213 (All.),
Gumani Ram Siri Ram v. CIT [1972] 85 ITR 67 (Punj.),
Krishanlal Shiv Chand Rai v. CIT [1973] 88 ITR 293 (Punj.),
Mahavir Metal Works v. CIT [1973] 92 ITR 513 (Punj.),
CIT v. Narang & Co. [1975] 98 ITR 462 (Delhi),
Durga Timber Works v. CIT [1971] 79 ITR 63 (Delhi)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
271(1)(c)
|