1981 (7) TMI 17

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....ding of the Tribunal that the assessee was not guilty of any fraud or wilful neglect in returning the income which resulted in the income being returned at a figure lower than 80% of the income assessed, is contrary to the weight of the material on record and was arrived at without considering the entire evidence and material on record ? 2. Whether, on the facts and in the circumstances of the case, and in view of the provisions contained in section 271(1)(c) of the Income-tax Act, 1961, and the Explanation thereto, the Tribunal was right in law in upholding the Appellate Assistant Commissioner's order cancelling the penalty imposed on the assessee ? " Brief facts relevant to dispose of this application are as follows: The assessee is....

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....of the Explanation to s. 271(1)(c) of the I.T. Act and failed to appreciate the question of burden of proof, a question of law arises out of the Tribunal's order and the Tribunal should be directed to refer the same for this court's opinion. Reliance was placed on a decision of the Supreme Court in Addl. CIT v. Chandravilas Hotel [1978] 115 ITR 118. We have carefully perused the order of the Appellate Tribunal and the material placed before us by the Department. It is clear to us that the Appellate Tribunal addressed itself properly to the question arising in the appeal and after considering the Explanation to s. 271 (1)(c) of the Act recorded a finding of fact that there was no concealment of income by the assessee. The case cited by th....

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....d our attention to some observations made by the Tribunal in the order with regard to the nature and effect of an agreed assessment. It is not necessary for us to make any comment on these observations because they are not relevant. The relevant part of the Tribunal's order is as follows : " In this case except for the agreement, there is absolutely no proof that this was an actual income of the assessee and the agreement of the assessee can hardly be utilised as evidence for imposing penalty upon him in the particular circumstances of the case. " (Emphasis supplied). The basic question to be decided for imposing penalty under s. 271(1)(c) of the Act is whether the assessee has concealed the particulars of his income or furnished inac....