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2012 (10) TMI 482 - ITAT, DELHIPenalty u/s 271(1)(c) - Held that:- The assessee did not discharge the onus regarding credit of cash in the name of two partners in the books of the firm, instead, in response to a query by the AO, seeking evidence in support of aforesaid cash, the assessee surrendered to tax the amount of Rs.30 lacs on 30.3.2007. Subsequently, in response to a show cause notice before levy of penalty, the assessee did not explain the source of cash introduced in the name of two partners nor submitted any further explanation, establishing their bonafide. Also, the assessee did not improve upon his case in the penalty proceedings. Before the ld. CIT(A) or even before us, no attempt was made to establishing the source of aforesaid cash, thus he assessee's explanation has not been found to be bona fide and it failed to furnish all relevant material particulars relating to the concealed income and to discharge its burden that lay upon it under Explanation 1 to section 271(1)(c). A very heavy onus is placed on the assessee to explain the difference between the assessed income and returned income and the assessee in the instant case did not discharge the said onus, thus no hesitation in upholding the order of the CIT(A) in confirming the penalty imposed by the AO u/s 271(1)(c) - against assessee.
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