2010 (3) TMI 774

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..... his case speaks volumes in favour of the assessee. The assessee is not the father of the bride. The Assessing Officer has simply assumed and presumed facts. The assessee had offered explanation but to avoid harassment and embarrassment and further litigation did not contest the quantum addition. In our opinion, this is not a fit case for the levy of penalty. Accordingly, we order to delete/cancel the impugned penalty and allow the appeal of the assessee.
HARI OM MARATHA, ABRAHAM P. GEORGE, JJ. S. Sridhar for the Appellant. Shaji P. Jacob for the Respondent. ORDER Hari Om Maratha, Judicial Member. - This appeal of the assessee for assessment year 1996-97 although is directed against the order of the ld. CIT(A) dated 25-4-2007 yet i .....

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..... Explanation 1 to section 271(1)(c) of the Act raises a presumption of concealment which the assessee is bound to rebut. The circumstances in which this presumption would operate are well defined by the words used in this Explanation itself. For ready reference we are extracting Explanation 1 to section 271(1)(c) of the Act herein below: "Explanation 1.--Where in respect of any facts material to the computation of the total income of any person under this Act,-- (A) such person fails to offer an explanation or offers an explanation which is found by the Assessing Officer or the Commissioner (Appeals) or the Commissioner to be false, or (B) such person offers an explanation which he is not able to substantiate and fails to prove that su .....

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..... nd this assessee being related to the girl in whose marriage electricity was consumed, after rejecting assessee's explanation to the tune of Rs. 4,89,830 out of total Rs. 19.86 lakhs, a case either of concealment of income or that of furnishing of inaccurate particulars of income is not made out. The assessee is not found to have made false claim. Explanation 1 to section 271(1)(c) of the Act operates only in the circumstances when: (a) the person fails to offer the explanation, or (b) he offers the explanation which is found by the Authorities to be false; or (c) the person offers explanation which he is not able to substantiate and fails to prove that such explanation is bona fide and that all facts relating to the same have been di .....

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