1984 (1) TMI 36 - HC - Income Tax

Summary

Issues involved: Income tax matter, penalty imposition, burden of proof under section 271(1)(c) of the Income-tax Act.

Summary:
The High Court of Punjab and Haryana addressed an income tax matter where the assessee's return was initially rejected by the Income Tax Officer (ITO), leading to a penalty imposition by the Income-tax Appellate Tribunal. The Tribunal later canceled the penalty based on three key particulars. The Revenue sought a mandamus from the court, which directed the Tribunal to refer the question of whether the burden of proof under section 271(1)(c) was discharged by the assessee. The Tribunal considered various factors, including discrepancies in stock statements and dividend income, to determine if the burden of proof was met. The court clarified the concept of "evidence" in the context of income tax proceedings and concluded that the assessee had provided enough evidence to discharge the burden under section 271(1)(c). The court ruled in favor of the assessee, stating that the burden of proof was indeed met based on the evidence presented. The judgment was delivered by Judges M. M. Punchhi and R. N. Mittal, with both agreeing on the decision.