1976 (2) TMI 14

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....erred for our opinion : " Whether, upon the facts and circumstances of the case, the Income-tax Appellate Tribunal was right in law in holding that no penalty could be levied under section 271(1)(c) of the Income-tax Act, 1961, upon the assessee ? " The facts were that for the assessment year 1965-66 the assessee-firm filed a return showing an income of Rs. 42,887. The Income-tax Officer complet....

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....lanation given regarding the cash credit was not even probable. The assessee filed an appeal and the Income-tax Appellate Tribunal (hereinafter called the " Appellate Tribunal ") set aside both these findings and recorded the following findings. It found : " No doubt, though her statement was not satisfactory for the purposes of assessment proceedings, yet it cannot be said that the statement was....

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.... any finding that the assessee has discharged its burden and has satisfactorily established that it was not guilty of fraud or gross misconduct. According to him, after the addition of the Explanation, the presumption of fact arose against the assessee and it was for it to establish the same by positive evidence that he was neither guilty of fraud nor he was guilty of gross misconduct. Without goi....