Assessee must prove lack of concealment: High Court emphasizes onus; case remanded for rehearing

The High Court held that the mere difference in the assessed income does not prove fraudulent suppression, emphasizing that the onus is on the assessee to prove lack of deliberate concealment. The court noted potential injustice to the assessee due to incorrect legal principles applied by the Tribunal and remanded the case for rehearing with proper legal standards. The judgment was made without costs, with agreement from the second judge on the panel.

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Issues:
1. Whether the levy of penalty could be deleted based on the fact that it was not exigibleRs.

Analysis:
The case involved an assessment year of 1962-63 under the Income-tax Act, 1961. The original assessment was completed for a sum of Rs. 70,422, which was later revised under section 147(a) to Rs. 1,26,322. The Appellate Assistant Commissioner reduced the assessable income to Rs. 1,04,322, and the Income-tax Appellate Tribunal further decreased it to Rs. 93,322 by deleting certain amounts. Subsequently, a penalty proceeding was initiated under section 271(1)(c) for concealment of income, resulting in a penalty of Rs. 40,000 being imposed. The Tribunal, however, deleted the penalty, stating that the mere difference between the originally assessed income and the final income does not prove fraudulent suppression. The High Court emphasized that the onus is on the assessee to prove that the suppression was not deliberate, based on the preponderance of probabilities akin to a civil suit standard, not beyond reasonable doubt as in criminal cases.

Furthermore, the High Court acknowledged that its decision might cause injustice to the assessee as the Tribunal did not consider the correct legal principles while evaluating the case. The court highlighted that even though the onus is on the assessee, it can be discharged if the explanation provided is accepted or if the case is proven through other available evidence. Consequently, the case was remanded back to the Tribunal for a rehearing, instructing them to consider the correct legal standards. The judgment concluded with no order as to costs, and the second judge on the panel agreed with the decision.

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