TaxTMI 
TaxTMI 
2019 (3) TMI 1152
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....e appeal, the assessee has filed an affidavit stating interalia that the concerned staff of the assessee did not inform the management and kept the order of CIT(A) in his table and went on leave. The factum of receipt of order of the ld.CIT(A) has not been intimated to the assessee. When the assessee came to know about the same immediately approached its counsel for filing the appeal before the Tribunal. Therefore, delay was caused due to negligence on the part of its staff, and the assessee has no mala fide intention to get its appeal delayed before this Tribunal. Therefore, delay in filing the appeal may be condoned and the appeal of the assessee be adjudicated on merit. 3. After considering the submissions of the assessee, we are o....
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....r section 143(3) of the Act. He considered three items, viz. (a) addition on account of interest income of Rs. 61,918/-; (b) addition on account of disallowance claimed for pilferage and waste in ghee account of Rs. 4,480/-, and (c) denial of exemption under section 80P(2) of interest income earned from nationalized banks. He observed that taxes on all these items worked out Rs. 90,469/-. According to the AO, it amounts to deemed concealment of income within the ambit of Explanation 1 appended to section 271(1)(c) of the Act. Hence, penalty deserves to be imposed upon the assessee. Appeal to the ld.CIT(A) did not bring any relief to the assessee. 5. We have considered rival contentions and gone through the record. Section 271(1)(c) of th....
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....to the computation of his total income have been disclosed by him, then, the amount added or disallowed in computing the total income or such person as a result thereof shall, for the purposes of Clause (c) of this sub-section, be deemed to represent the income in respect of which particulars have been concealed." 6. A bare perusal of this section would reveal that for visiting any assessee with the penalty, the Assessing Officer or the Learned CIT(Appeals) during the course of any proceedings before them should be satisfied, that the assessee has; (i) concealed his income or furnished inaccurate particulars of income. As far as the quantification of the penalty is concerned, the penalty imposed under this section can range in between 10....
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....ng a categorical finding to the effect that explanation given by the assessee is false. In the second situation, the deeming fiction would come to play by the failure of the assessee to substantiate his explanation in respect of any fact material to the computation of total income and in addition to this the assessee is not able to prove that such explanation was given bona fide and all the facts relating to the same and material to the computation of the total income have been disclosed by the assessee. These two situations provided in Explanation 1 appended to section 271(1)(c) makes it clear that that when this deeming fiction comes into play in the above two situations then the related addition or disallowance in computing the total ....