Penalty by resorting to the explanation to Section 271(1)(c). - Income Tax - 449/CBDT

INSTRUCTION NO. 449/CBDT Dated: August 22, 1972 Section(s) Referred: 271(1)(c) Statute: Income - Tax Act, 1961 Reference is invited to Board's instruction No. 325 (F.267/607/71-ITJ) dated 22nd September, 1971 on the above subject. 2. In cases where it is not possible to establish concealment but where the return of income was filed after 1-4-1964, depending upon the difference between the income assessed and the income returned, it is possible to support a penalty by resorting to the explanation to Section 271(1)(c). Where the Tribunal knocks off a penalty, we are filing a reference application to the High Court to test the applicability of the explanation. 3. In some of the cases, however, where the only ground on which the penalty can be sustained is the explanation, the explanation is neither referred to in the Inspecting Asst. Commissioner's order nor canvassed before the Tribunal, the Board desire that in such cases we should avoid filing applications for a reference and withdraw applications which are pending.