| Case ID |
4515d94a-b549-4ae4-b2d9-79f2651b70f9 |
| Body |
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| Case Number |
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| Decision Date |
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| Hearing Date |
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| Decision |
The Tribunal erred in setting aside the penalty imposed under section 271(1)(c) of the Income-tax Act, 1961. The initial burden was on the assessee to demonstrate that the failure to report accurate income was not due to fraud or gross negligence. The assessee did not provide any explanation to discharge this burden, and the total income reported was less than 80% of the assessed income. Therefore, the presumption of concealment of income remained unrefuted, validating the imposition of the penalty. |
| Summary |
This case revolves around the imposition of a penalty under section 271(1)(c) of the Income-tax Act, 1961, for the concealment of income. The assessee, a Hindu Undivided Family (HUF) involved in the timber business, reported an income of Rs. 6,912 for the assessment year 1968-69, while the Income-tax Officer assessed it at Rs. 32,170. A cash credit of Rs. 6,600 was identified, and the assessee failed to provide a satisfactory explanation regarding its genuineness. The Appellate Assistant Commissioner upheld the addition made by the Income-tax Officer. Subsequent penalties were imposed due to the lack of evidence provided by the assessee. The Tribunal initially set aside the penalty, leading to a reference to the High Court. The court reaffirmed that the assessee had the burden to refute the presumption of concealment and found no evidence presented. Thus, the decision favored the Revenue, highlighting the importance of transparency in income reporting and compliance with tax regulations. |
| Court |
Patna High Court
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| Entities Involved |
Not available
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| Judges |
G.G. Sohani, C.J.,
G.C. Bharuka, J.
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| Lawyers |
S.K. Sharan
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| Petitioners |
Commissioner of Income Tax
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| Respondents |
Bhimraj Chandak
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| Citations |
1991 SLD 1677 = (1991) 189 ITR 429
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| Other Citations |
CIT v. Mussadilal Ram Bharose [1987] 165 ITR 14 (SC),
CIT v. Nathulal Agarwala & Sons [1985] 153 ITR 292 (Pat.)(FB)
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| Laws Involved |
Income-tax Act, 1961
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| Sections |
271(1)(c)
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