https://www.taxtmi.com/caselaws?id=332240 Penalty under section 271(1)(c) was discussed in the context of unexplained cash credits under section 68 where the assessee had proved identity of creditors but not their creditworthiness or the genuineness of the transactions. The creditors' explanations for the source of funds were found unsupported by evidence, including claims of money from relatives and agricultural income. Applying Explanation 1 to section 271(1)(c) and the test of human probabilities, the text treats the explanation as not bona fide and the arrangement as a designed method to introduce capital, leading to deemed concealment and exigibility of penalty. en-us Tue, 02 Aug 2016 00:00:00 +0530 Tue, 13 Sep 2016 13:33:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=332240 Penalty under section 271(1)(c) was discussed in the context of unexplained cash credits under section 68 where the assessee had proved identity of creditors but not their creditworthiness or the genuineness of the transactions. The creditors' explanations for the source of funds were found unsupported by evidence, including claims of money from relatives and agricultural income. Applying Explanation 1 to section 271(1)(c) and the test of human probabilities, the text treats the explanation as not bona fide and the arrangement as a designed method to introduce capital, leading to deemed concealment and exigibility of penalty. Case-Laws Income Tax Tue, 02 Aug 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=332240