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1999 PTD 3266

13. A. BALASUBRAMANIAM & BROS. CO. vs COMMISSIONER OF INCOME-TAX

Citation1999 PTD 3266
CourtSupreme Court of India
Case No.C. As. Nos.1515 to 1517 of 1985
Date1998-01-22
Judge(s)B. N. Kirpal, S. P. Kurdukar
ResultAppeals dismissed

1. ' In these appeals the question involved relates to the interpretation of the Explanation to section 271(1)(c) of the Income-tax Act for the purpose of levying penalty on the concealed income. The High Court, on a reference having been made, has come to the conclusion that as the difference between the income assessed and the income returned was more than 20 per cent., therefore, the said Explanation became applicable and the Income-tax Officer was justified in imposing penalty because the assessee had not been able to discharge the onus which was on it under the said Explanation. For the interpretation of the said provision we need to refer to three decisions of this Court, viz., CIT v. Mussadilal Ram Bharose (1987) 165 ITR 14; CIT v. K. R. Sadayappan (1990) 185 ITR 49 and CIT (Addl.) v. Jeevan Lal Sah (1994) 205 ITR 244. In these decisions it has been clearly stated that with the incorporation of the Explanation to section 271, the view which had been taken earlier in CIT v. Anwar Ali (1970) 76 ITR 696, no longer holds the field and it is for the assessee to discharge the onus as contemplated in the said. Explanation. In view of the fact that in the instant case the onus has not been discharged, the High Court judgment calls for no interference, The appeals are accordingly dismissed but with no order as to costs.

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