Section 271(1)(c) burden of proof was rebutted on facts, so concealment penalties were cancelled.

The statutory presumption under the Explanation to section 271(1)(c) of the Income-tax Act operated because the returned income was below 80% of the assessed income. The Tribunal examined the assessee's explanation and surrounding facts, and found that the presumption had been rebutted. That rebuttal was treated as a finding of fact, and it was not shown to lack evidentiary support. On that basis, the concealment penalties were cancelled.

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Issues: Whether the assessee discharged the burden arising from the Explanation to section 271(1)(c) of the Income-tax Act, 1961, so as to justify cancellation of the concealment penalties.

Analysis: The returned income being less than 80% of the assessed income, the statutory presumption under the Explanation to section 271(1)(c) operated against the assessee. The Tribunal, however, assessed the explanation and surrounding facts and recorded a finding that the assessee had successfully rebutted that presumption. That finding was treated as one of fact, and it was not shown to be unsupported by evidence.

Conclusion: The assessee discharged the onus under the Explanation, and the penalties were rightly cancelled.

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