https://www.taxtmi.com/caselaws?id=26787 The High Court upheld the Tribunal's decision to cancel the penalty imposed under the Explanation to section 271(1)(c) of the Income-tax Act, 1961. The Court emphasized that penalty proceedings should rely on the evidence available at the time of imposition, and subsequent findings cannot validate the penalty. The Tribunal correctly found that the assessee had discharged its burden by providing confirmation letters from creditors, shifting the onus to the Department. The Court agreed that the penalty could not be upheld without establishing the guilt of the assessee based on the facts on record. en-us Fri, 14 Dec 1984 00:00:00 +0530 Mon, 08 Feb 2010 14:51:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26787 The High Court upheld the Tribunal's decision to cancel the penalty imposed under the Explanation to section 271(1)(c) of the Income-tax Act, 1961. The Court emphasized that penalty proceedings should rely on the evidence available at the time of imposition, and subsequent findings cannot validate the penalty. The Tribunal correctly found that the assessee had discharged its burden by providing confirmation letters from creditors, shifting the onus to the Department. The Court agreed that the penalty could not be upheld without establishing the guilt of the assessee based on the facts on record. Case-Laws Income Tax Fri, 14 Dec 1984 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26787