Punjab & Haryana H.C : Whether, on the facts and in the circumstances of the case, the Tribunal was justified in directing to delete the penalty under s. 271(1)(c) amounting to Rs. 45,595 and whether the assessing authority was required by law to established concealment beyond the shadow of doubt despite the existence of Expln. 1 to s. 271(1)(c), which raises a presumption against the assessee and shifts the onus upon him ?

High Court Of Punjab & Haryana

CIT vs. Nav Bharat Traders

Section 271(1)(c) Expln. 1

R.L. Anand & Nirmal Singh, JJ.

ITA No. 159 of 1999

5th September, 2000

Counsel Appeared

R.P. Sawhney with Rajesh Bindal, for the Appellant : None, for the Respondent

JUDGMENT

BY THE COURT :

The challenge in this appeal is to the order dt. 2nd Feb., 1999, passed by the Tribunal, Delhi Bench “A”, Delhi, vide which the penalty under s. 271(1)(c) was deleted.

2. After hearing counsel for the appellant. We are of the opinion that the following question of law is required to be formulated in this case :

“Whether, on the facts and in the circumstances of the case, the Tribunal was justified in directing to delete the penalty under s. 271(1)(c) amounting to Rs. 45,595 and whether the assessing authority was required by law to established concealment beyond the shadow of doubt despite the existence of Expln. 1 to s. 271(1)(c), which raises a presumption against the assessee and shifts the onus upon him ?”

3. Counsel for the appellant invited our attention to the provisions of Expln. 1 added to s. 271(1) (c), and submits that as per this Explanation, w.e.f. 1st April, 1976, the onus has been shifted upon the assessee and he has to show that the explanation which he has furnished is correct.

4. We are of the opinion that the matter has not been rightly looked into in the right perspective by the learned Tribunal. In this view of the matter, we allow this appeal and set aside the impugned order dt. 2nd Feb., 1999, and the penalty of Rs. 45,595, which was ordered to be deleted by the Tribunal is hereby set aside and the order of the AO stands restored.

[Citation : 248 ITR 255]

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