1980 (2) TMI 120

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....d with reference to the addition of Rs. 1,05,045 made as assessee's undisclosed income. The IAC has held that the cash pronotes and investments found in the names of the assessee's relatives in fact belonged to the assessee and he has not disclosed the source of the same. The assessee has concealed the particulars of income and is therefore liable for penalty. Accordingly he imposed a minimum pena....

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....at we have upheld the addition made by the ITO in the assessment. But that does not automatically lead to the conclusion that penalty is leviable. This is a case where the assessee's explanation has been rejected. The books of account of the assessee have not been accepted. It is well settled that in the penalty proceedings, it is for the Department to prove that the assessee has concealed the inc....

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....om establishing the necessary facts for levying penalty under the provisions of s. 271(1)(c). The above ratio squarely covers the instant case. In the instant case except the falsity of explanation relating to the addition of income in the assessment proceedings the Department has not brought any material on record in the penalty proceedings to prove that the assessee has concealed the income or f....