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2006 (3) TMI 133 - HC - Income TaxPenalty levied u/s 271(1)(c) - Concealment of Income - HELD THAT:- In our considered opinion it is a clear case where the assessee failed to prove certain heavy transactions which they claimed to have entered into with some kabaddies for purchase of scrap "raw material" for manufacturing of steel items in their factory. If the assessee despite affording them an opportunity, to prove the transactions relied on by them for claiming benefits failed to substantiate, then a case for imposition of penalty is made out. In other words in such circumstances it becomes a case of concealment of true income chargeable to tax. When a bogus claim is made to evade tax and the same is proved to be bogus then in these circumstances, a case for imposition of penalty is made out. It is for the reason that it exhibits animus on the part of the assessee in concealing the true income and further exhibits an attempt on the part of the assessee to set up a bogus claim to avoid payment of legitimate tax which is otherwise due and payable on their true income for the year in question. We are also unable to accept the submission of learned counsel for the assessee when he contended that in the absence of any finding on the latter part of Explanation (1) to section 271(1)(c), the case has to be either remanded or the impugned penalty be set aside. As a result we do to find any merit in this appeal which fails and is hereby dismissed.
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