1992 (8) TMI 116 - AT - Income Tax

Summary

Issues:
Confirmation of penalty under section 271(1)(c) of the Income-tax Act for the assessment year 1975-76 based on concealment of income.

Detailed Analysis:

1. Facts of the Case:
- The assessee introduced cash amounting to Rs. 1,10,000 on 9-11-1973, claiming it was a cheque from Punjab National Bank.
- Upon investigation, it was found that the bank payment was made on 12-11-1973, not on 9-11-1973 as claimed by the assessee.
- The Assessing Officer added Rs. 1,10,000 as income from undisclosed sources and imposed a penalty under section 271(1)(c) for concealment of income.

2. Arguments by Assessee:
- Assessee's counsel argued that the evidence provided, including a letter from the bank manager, supported the claim that payment was made on 9-11-1973.
- Assessee contended that penalty should not be imposed as there was no deliberate concealment of income and the charge was imprecise.

3. Revenue's Arguments:
- Revenue relied on the bank manager's subsequent statement and bank records to prove that the payment was made on 12-11-1973.
- Cited legal precedents to support the imposition of penalty based on the same material used for assessment.

4. Tribunal's Decision:
- Tribunal noted discrepancies in the evidence provided by the bank manager and other witnesses.
- Upheld the addition of Rs. 1,10,000 as income and confirmed the penalty under section 271(1)(c) based on the Explanation to the Act.
- Rejected the argument of a common practice of bank accommodation as a defense for the assessee.

5. Conclusion:
- Tribunal dismissed the appeal, affirming the penalty imposed for concealment of income under section 271(1)(c).
- Found that the Explanation to the Act was applicable due to the significant difference between the assessed and returned income.
- Held that the penalty was justified based on the established concealment beyond doubt.

This detailed analysis outlines the key aspects of the judgment, including the facts of the case, arguments presented by both parties, the Tribunal's decision, and the reasoning behind confirming the penalty for concealment of income.