1986 (7) TMI 137

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....0 under s. 271(1)(c) for the asst. yr. 1976-77. 2. This is a case of a registered firm which has been assessed on total income of Rs. 54,930 as against the income returned of Rs. 43,990. The difference between the income assessed and returned was mainly due to the addition of Rs. 10,000 as income from undisclosed sources which represented cash credits totalling Rs. 10,000 in the name of one Sri....

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.... submission made before the ITO. The relevant portion of the assessee's confession reads as follows: "In regard to the above the assessee had Hather dealings with Sri Kanhiya Lal Bhotpar Jaunpur. Since the amounts have been paid off, the said party is now unscrupulously avoiding confirmation. Accordingly this assessee, for want of proper evidence, is herewith surrendering the amount to avoid pe....

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....rs of the authorities below. 4. The High Court decision relied upon by the assessee's ld. counsel deals with the law relating to penalty as it stood on 1st April, 1964 when Explanation to s. 271(1)(c) was brought into the statute. The law since then has substantially changed by the Taxation Laws (Amendment) Act, 1975 w.e.f. 1st April, 1976 by virtue of which the original Explanation inserted by....

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.... concealment of income against the assessee by incorporating cl. (b) of Expln. 1 of s. 271(1)(c). The ITO mentioned in his order that the assessee failed to substantiate the explanation offered in regard to the cash credits detected by the ITO in the account of Sri Kanhiya Lal whose name appeared in the Balance sheet submitted by the assessee. It was for the assessee to bring its case within the e....