1989 (2) TMI 54

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....matter here concerns the burden of proof under section 271(1)(c) of the Income-tax Act, 1961, in the context of the amendment made therein by the Finance Act, 1964. The assessee, Simco Auto India, declared an income of Rs. 6,197. After the examination of the accounts of the assessee, the Income-tax Officer added a further sum of Rs. 14,600 thereto and penalty proceedings were thereafter initiat....

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....le and when this is so, three legal presumptions arise, namely : (i) that the amount of the assessed income is the correct income and it is in fact the income of the assessee himself, (ii) that the failure of the assessee to return the correct assessed income was due to fraud, or (iii) that the failure of the assessee to return the correct assessed income was due to gross or wilful neglec....