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TMI Blog2014 (12) TMI 1055X X X X Extracts X X X X X X X X Extracts X X X X ..... re that the assessee filed return of income declaring loss of Rs. 83,55,091/-. The case was reopened u/s 148 of the Act on the basis of information from Director (Investigation) that the assessee had obtained accommodation entries. Therefore, assessee was show caused to prove the genuineness of receipt of amount of Rs. 10,01,500/- from M/s. Manohar Lal Manish Kumar. However nobody attended the proceedings despite the A.O. issued notices on 2-3 occasions. The A.O. on the basis of information called form Jai Laxmi Cooperative Bank Ltd. u/s 133(6) of the Act, observed that in the bank statement of M/s. Manohar Lal Manish Kumar on 01.06.2001, an amount of Rs. 10,01,500/- was deposited in cash and on the same date a cheque of equivalent amount w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. In the case of K.C.Builders Supreme Court has held that: "It, is implicit in-the word "concealed" that there has been a deliberate act on the part of the assessee." In this case, the amount of Rs. 10,01,500/- represents 'the appellant's concealed income. There is an intention and desire on the part-of the appellant to hide or conceal the income so as to avoid the imposition of tax thereon.' The appellant has consciously made the concealment and furnished inaccurate particulars of his) income with a, view to avoid .imposition of tax. In the case of Balwant Rai and Co. the Allahabad High Court has held that were the appellant does not offer any explanation regarding the source of deposit either in the assessment proceedings o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deliberately deployed its own income as share application money provided by a person which it could not prove, therefore, mens rea and concealment both are proved in the present case. 6. We have heard rival parties and have gone through the material placed on record. Section 271(1)(c) of the Act has a direct bearing on the controversy and therefore, it is salutary on our part to take note of provisions of Section 271(1)(c) along with Explanation which reads as under: "271. Failure to furnish returns, comply with notices, concealment of income, etc. (1). If the Assessing Officer or the Commissioner (Appeals) or the CIT in the course of any proceedings under this Act, is satisfied that any person (a) and (b)******** (c) has concealed th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he course of any proceedings before them should be satisfied, that the assessee has; (i) concealed his income or furnished inaccurate particulars of income. As far as the quantification of the penalty is concerned, the penalty imposed under this section can range in between 100% to 300% of the tax sought to be evaded by the assessee, as a result of such concealment of income or furnishing inaccurate particulars. The other most important features of this section is deeming provisions regarding concealment of income. The section not only covered the situation in which the assessee has concealed the income or furnished inaccurate particulars, in certain situation, even without there being anything to indicate so, statutory deeming fiction for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me have been disclosed by the assessee. These two situations provided in Explanation 1 appended to section 271 (1)( c) makes it clear that that when this deeming fiction comes into play in the above two situations then the related addition or disallowance in computing the total income of the assessee, for the purpose of section 271(1)(c) would be deemed to be representing the income in respect of which inaccurate particulars have been furnished." 7. In the light of above proposition, let us examine the facts of the present case. In the present case, the assessee claimed to have received share application money from one person which the Director (Inv.) had found to be engaged in the business of accommodation entries and assessee was found t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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