TaxTMI 
TaxTMI 
2004 (10) TMI 26
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....c) of the Income-tax Act, 1961, could not be levied even if the assessee had not disclosed in their returns of income their agricultural income for the assessment year 1974-75?" Briefly stated, the facts giving rise to the present reference are as follows: A consolidated reference in respect of the three assessees, namely, Smt. Shashi Aggarwal, Master Manoj Narain and Sri K.N. Agarwal, has been made by the Tribunal, which relates to the assessment year 1974-75. All the three respondent-assessees own a farm, known as Prag Agricultural Farm, along with one Sri S.N. Agarwal. They were in receipt of their respective share of income from the farm as co-owners. In the return of income filed by them for the assessment year in question, they ....
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....ents, submitted that the accounts of the farm in which the respondents were partners/co-owners, closed on June 30 of every year and for the relevant year under consideration its account was closed on June 30, 1974. The major portion of the taxable income of the respondents was from the source, the accounts of which were closed on December 31, every year and accounts of the taxable income for the assessment year in question closed on December 31, 1973. According to him, the assessment year under consideration is 1974-75 which was the first year in which the agricultural income came to be included in the income for rate purposes only and since the date June 30, 1974, fell within the assessment year 1975-76, they honestly believed that even fo....
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....f Income-tax (Appeals), which has been upheld by the Tribunal. In support of his aforesaid submissions, he has relied upon the following decisions: (i) Hindustan Steel Ltd. v. State of Orissa [1972] 83 ITR 26 (SC); and (ii) K.C. Builders v. Asst. CIT [2004] 265 ITR 562 (SC). Having heard learned counsel for the parties, we find that it is not in dispute that the Union of India has no legislative competence to levy any tax on agricultural income as under entry 82 of List I of the Seventh Schedule to the Constitution of India, it can levy taxes only on income other than agricultural income. Under section 10(1) of the Act, agricultural income has been specifically 8 excluded from computing the total income. Even under section 2(24) of th....
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.... his income", would require the mental element to be established. The word "concealed" itself would import this requirement. The Explanation creates a legal fiction in certain circumstances to the effect that the assessee shall be deemed to have concealed the particulars of his income or furnished inaccurate particulars of his income in the circumstances set out in the Explanation. If the Explanation is attracted, the burden shifts on the assessee and if he establishes that the failure to return the correct income did not arise from any fraud or any gross or wilful neglect on his part, the burden would again shift to the Revenue to prove that the assessee is guilty of concealment. In the case of Hindustan Steel Ltd. [1972] 83 ITR 26, ....
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....rt while considering the provision of section 271(1)(c) of the Act, has held as follows: "One of the amendments made to the abovementioned provisions is the omission of the word 'deliberately' from the expression 'deliberately furnished inaccurate particulars of such income'. It is implicit in the word 'concealed' that there has been a deliberate act on the part of the assessee. The meaning of the word 'concealment' as found in Shorter Oxford English Dictionary, third edition, volume I, is as follows: 'In law, the intentional suppression of truth or fact known, to the injury or prejudice of another.' The word 'concealment' inherently carried with it the element of mens rea. Therefore, the mere fact that some figure or some particul....