https://www.taxtmi.com/caselaws?id=168259 Penalty under section 28(1)(c) of the Income-tax Act, 1922 is penal in nature, so the Department must affirmatively prove concealment of income or deliberate furnishing of inaccurate particulars. A merely false explanation does not, by itself, establish that the receipt was taxable or that the statutory offence was committed, and the assessee was therefore not liable to penalty. Assessment and penalty proceedings are distinct and self-contained; a finding in assessment does not operate as res judicata in penalty proceedings, though it may be relevant material to consider. The Court held that the Department had failed to bring home the penalty charge. en-us Fri, 14 Mar 1958 00:00:00 +0530 Wed, 11 Feb 2015 15:37:36 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=168259 Penalty under section 28(1)(c) of the Income-tax Act, 1922 is penal in nature, so the Department must affirmatively prove concealment of income or deliberate furnishing of inaccurate particulars. A merely false explanation does not, by itself, establish that the receipt was taxable or that the statutory offence was committed, and the assessee was therefore not liable to penalty. Assessment and penalty proceedings are distinct and self-contained; a finding in assessment does not operate as res judicata in penalty proceedings, though it may be relevant material to consider. The Court held that the Department had failed to bring home the penalty charge. Case-Laws Income Tax Fri, 14 Mar 1958 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=168259