https://www.taxtmi.com/caselaws?id=69599 Explanation 1 to section 271(1)(c) is treated as a rule of evidence: where an assessee fails to explain, substantiates poorly, or offers a false explanation for additions such as unexplained bank deposits and investments, the amount added is deemed concealed income unless rebutted with cogent, reliable and relevant material showing bona fide disclosure of all material facts. Assessment and penalty proceedings remain distinct, but assessment material may be used in penalty proceedings. The omission to expressly cite the Explanation in the penalty order does not prevent its application when the issue is considered in appellate proceedings. On the stated facts, the assessee did not discharge the burden, so penalty was sustained. en-us Thu, 03 Jul 1997 00:00:00 +0530 Thu, 07 Apr 2011 18:32:25 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=69599 Explanation 1 to section 271(1)(c) is treated as a rule of evidence: where an assessee fails to explain, substantiates poorly, or offers a false explanation for additions such as unexplained bank deposits and investments, the amount added is deemed concealed income unless rebutted with cogent, reliable and relevant material showing bona fide disclosure of all material facts. Assessment and penalty proceedings remain distinct, but assessment material may be used in penalty proceedings. The omission to expressly cite the Explanation in the penalty order does not prevent its application when the issue is considered in appellate proceedings. On the stated facts, the assessee did not discharge the burden, so penalty was sustained. Case-Laws Income Tax Thu, 03 Jul 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=69599