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2013 (2) TMI 181 - ALLAHABAD HIGH COURTPenalty u/s 271(1)(c) - extra liability in respect of sundry creditors - Held that:- Tribunal has held that except reiterating its stand that the balances shown in its books of account are correct no material was placed in support of the assertion. Thus, the explanation as given has not been substantiated. No supportive evidence was furnished in support of the correctness of the balances as shown in the books of account. The Tribunal has further found that after detection has been made by the Department the surrender made by the assessee does not absolve him from the charge for which he has to be proceeded against under the provisions of Section 271(1)(c). It has further held that the confirmation of third parties in regard to the balances appearing in books of account which differ from the ones recorded in the books of the assessee is an evidence against the assessee, which he must rebut with the material available with him and not only no efforts were made to do so the assessee kept on seeking adjournments till he was cornered by the third parties to prove inaccurate particulars of income shown by him. The Tribunal has held that from mere surrender would not absolve him from the charge against as levied. Thus the aforesaid finding recorded by the Tribunal clearly shows that at no point of time the assessee offered any explanation regarding the correctness of the balances shown in the sundry creditors' account and only when he was cornered and he had surrendered the amount. The decision of this Court in the case of Saran Khandsari Sugar Works (1999 (9) TMI 15 - ALLAHABAD HIGH COURT) would not be applicable as in the aforesaid case the Tribunal has held that the assessee had agreed to a higher assessment on the condition that no penalty would be imposed which was a finding of fact and further the Tribunal has held that no actual concealment was established and, therefore, the assessee was to be held to be discharged the onus under the Explanation to Section 271(1)(c). On the contrary in the present case the Tribunal has recorded findings which are against the appellant - against assessee.
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