https://www.taxtmi.com/caselaws?id=39027 Penalty under section 271(1)(c) of the Income-tax Act was considered in light of the Explanation placing the burden on the assessee where returned income fell below the prescribed percentage of correct income. The assessee had to show that the shortfall was not due to fraud or gross or wilful neglect. On the facts, the books were not regularly maintained and were rejected, leading to income being estimated at a flat rate; however, that circumstance alone did not establish the statutory concealment or culpable neglect required for penalty. The cancellation of penalty was therefore justified and upheld in favour of the assessee. en-us Thu, 02 May 1974 00:00:00 +0530 Mon, 12 Apr 2010 10:56:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39027 Penalty under section 271(1)(c) of the Income-tax Act was considered in light of the Explanation placing the burden on the assessee where returned income fell below the prescribed percentage of correct income. The assessee had to show that the shortfall was not due to fraud or gross or wilful neglect. On the facts, the books were not regularly maintained and were rejected, leading to income being estimated at a flat rate; however, that circumstance alone did not establish the statutory concealment or culpable neglect required for penalty. The cancellation of penalty was therefore justified and upheld in favour of the assessee. Case-Laws Income Tax Thu, 02 May 1974 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39027