2019 (5) TMI 739

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....tion 271(1)(c) of the Income Tax Act. 3. Brief facts of the case are that assessee is an individual and salaried employee of the Department of Post. He has filed return of income showing total income at Rs. 2,04,660/-. The case of the assessee was reopened and notice under section 143(2) was issued and served upon the assessee. In the assessment under section 143(3) one of the additions made was on account of unexplained cash credit of Rs. 8,49,500/-. This addition was challenged upto the Tribunal, and the Tribunal ultimately confirmed the same. Against this confirmation, the ld.AO initiated penalty proceedings under section 271(1)(c) of the Act. In the penalty proceedings, it was explained by the assessee that the assessee has not conce....

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.... (c) has concealed the particulars of his income or furnished inaccurate particulars of such income. He may direct that such person shall pay by way of penalty. (i)and (Income-tax Officer,)** ** ** (iii) in the cases referred to in Clause (c) or Clause (d), in addition to tax, if any, payable by him, a sum which shall not be less than, but which shall not exceed three times, the amount of tax sought to be evaded by reason of the concealment of particulars of his income or fringe benefit the furnishing of inaccurate particulars of such income or fringe benefits: Explanation 1- Where in respect of any facts material to the computation of the total income of any person under this Act, (A) Such....

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....en without there being anything to indicate so, statutory deeming fiction for concealment of income comes into play. This deeming fiction, by way of Explanation I to section 271(1)(c) postulates two situations; (a) first whether in respect of any facts material to the computation of the total income under the provisions of the Act, the assessee fails to offer an explanation or the explanation offered by the assessee is found to be false by the Assessing Officer or Learned CIT(Appeal); and, (b) where in respect of any fact, material to the computation of total income under the provisions of the Act, the assessee is not able to substantiate the explanation and the assessee fails, to prove that such explanation is bona fide and that the assess....