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2010 (2) TMI 962 - ALLAHABAD HIGH COURTPayment made to honey suppliers - satisfaction - Genuineness of expenditure - suppliers of raw honey and bee wax are rustic persons and nomadic tribal people, who are known as Kanjars and Banjaras by castes. - held that:- , the word, "satisfaction" used by the Legislature, should be construed strictly and satisfaction must be based on some material evidence on record. In the present case, merely on the ground that a few raw honey and bee wax suppliers did not turn up in response to the notice under sub-section (6) of section 133 of the Act, there appears to be no positive material to show the concealment of income or furnishing incorrect particulars by the appellant. Of course, the situation would have been different in case the appellant would have been dealing with the persons who are literate or urban people. In a country where 40 per cent. persons are living below poverty line and equal percentage of people, are illiterate, then while proceeding ahead to impose penalty under sub-section (1) of section 271 of the Act, the assessing authority or taxing authority must look into the surrounding facts and circumstances and social status of persons who are engaged in the business. Decided in favor of assessee.
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