Concealment penalty burden shifts under Section 271(1)(c) when assessed income exceeds returned income and the assessee cannot rebut it.

The Explanation to Section 271(1)(c) of the Income-tax Act, 1961 governs concealment penalty where assessed income exceeds returned income beyond the prescribed threshold, shifting the burden to the assessee to rebut the statutory presumption. The earlier view in Anwar Ali no longer applies to such proceedings. The assessee must discharge the onus created by the Explanation with material showing absence of concealment or inaccurate particulars. On the stated facts, that onus was not discharged, so the concealment penalty was justified.

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Issues: Whether the Explanation to Section 271(1)(c) of the Income-tax Act, 1961 applied to the concealment penalty in view of the difference between the assessed income and the returned income, and whether the assessee had discharged the onus cast by that Explanation.

Analysis: The decision reaffirmed that, after insertion of the Explanation to Section 271(1)(c), the earlier view in Anwar Ali no longer governs concealment penalty proceedings. Where the difference between assessed and returned income exceeds the prescribed threshold, the statutory presumption under the Explanation operates and the assessee must rebut it by discharging the onus placed upon it. The authorities relied upon confirmed that the Explanation governs the burden of proof in such cases.

Conclusion: The assessee failed to discharge the onus under the Explanation, and the penalty was justified.

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