1974 (5) TMI 6

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..... eceipts were not verifiable for the truck business and the day-to-day yield record showing quantitative details of timber was not maintained in respect of forest business. The book version was also rejected because it showed low margin of profit. Certain expenses claimed by the assessee were also disallowed. As against the returned income of Rs. 55,556 the Income-tax Officer computed the correct i .....

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..... part. On this view he held that the assessee was liable to penalty and imposed the penalty of Rs. 6,200. On appeal before the Tribunal it was urged on behalf of the assessee that it has been established that it was not guilty of fraud or gross or wilful neglect. It was submitted on behalf of the assessee that the book version was rejected and profit was determined by applying a flat rate for wan .....

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..... rect application of the Explanation to section 271(1)(c) of the Income-tax Act 1961 ? " The Explanation aforesaid placed the burden upon the assessee to prove that there was no gross or wilful neglect, where the returned income was less than 80% of the correct income. A perusal of the order of the Tribunal leads us to the conclusion that it proceeded on the basis that the burden of proof was up .....

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