https://www.taxtmi.com/caselaws?id=12145 In penalty proceedings for concealment of income, the assessee's explanation forms a material part of the statutory inquiry under section 271(1)(c) of the Income-tax Act, 1961. The authority must examine whether the explanation is false or remains unsubstantiated and record a clear finding on that basis before sustaining penalty. Where the explanation is not considered and no finding on falsity or lack of substantiation is recorded, the statutory foundation for concealment is absent and the penalty cannot stand. en-us Mon, 07 Oct 2002 00:00:00 +0530 Wed, 17 Feb 2010 19:26:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=12145 In penalty proceedings for concealment of income, the assessee's explanation forms a material part of the statutory inquiry under section 271(1)(c) of the Income-tax Act, 1961. The authority must examine whether the explanation is false or remains unsubstantiated and record a clear finding on that basis before sustaining penalty. Where the explanation is not considered and no finding on falsity or lack of substantiation is recorded, the statutory foundation for concealment is absent and the penalty cannot stand. Case-Laws Income Tax Mon, 07 Oct 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=12145