2006 (7) TMI 189

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ons contained in section 271(1)(c) of the Income-tax Act, 1961, and the Explanation thereto, the Appellate Tribunal was right in law in cancelling the penalty imposed on the assessee ?" 2. Briefly, the facts are that the assessee left India in 1955 and was a British National living in England thereafter. For the assessment year in question, the assessee did not file return of income. When it came to the notice of the Income-tax Officer that the assessee had made certain investments during the assessment year in question, the sources of which could not be explained satisfactorily, a notice under section 148 of the Income-tax Act, 1961 (for short, "the Act") was issued on January 21, 1974. In response to the notice, the return was filed on....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....lty. 4. We have heard learned counsel for the parties and have gone through the record. 5. The relevant provisions of section 271(1)(c) of the Act, as it stood at the relevant time, are extracted below : "271.(1) If the Assessing Officer or the Commissioner (Appeals) in the course of any proceedings under this Act, is satisfied that any person— . . . . (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,—. . . (iii) in the cases referred to in clause (c), in addition to any tax payable by him, a sum which shall not be less than, but which shall not exceed twice, the amount of the income in respect of which the partic....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s and in case any investment remains unexplained, the same should be added in the hands of the Hindu undivided family. Another plea, which was found to be false on the basis of evidence on record, was that the assessee took a loan of Rs. 18,000 from his father-in-law Shri Kartar Singh, whose affidavit was also placed on record, in terms of which the loan was advanced by Shri Kartar Singh to the assessee out of his agricultural income. On an examination of Shri Kartar Singh by the Income-tax Officer, it was revealed that his annual income was merely Rs. 10,000 to Rs. 12,000. Shri Kartar Singh had a large family to support and nothing was brought on record by the assessee or Shri Kartar Singh to support the plea that as against the annual inc....