TMI Blog2005 (2) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... essment year 1993-94, the assessee filed a return of income on December 23, 1993, declaring an income of Rs. 97,920. This return of income was taken up for scrutiny assessment. The Income-tax Officer found from the books of account of the assessee a sum of Rs. 2,01,000 and a notice was issued to the assessee to explain the same. The assessee submitted his reply stating that he has borrowed the sum of Rs. 2,01,000 from different creditors. Since the assessee failed to secure the creditors, he voluntarily offered to treat the same as cash credit. On the basis of the submission of the assessee, the Income-tax Officer passed an assessment order on August 3, 1994, computing the total income of the assessee at Rs.2,99,500. Subsequently, the Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its in the books of account do not amount to concealment of income?" The Tribunal has redrafted the question of law and referred it to this court as stated supra. Sri M. V. Seshachala, learned counsel for the Revenue contends that the only explanation offered by the assessee to the show-cause notice issued under section 271(1)(c) of the Act was that the assessee has voluntarily offered the amount for addition to his income. This voluntary offer by the assessee for addition to his income was pursuant to the detection by the Income-tax Officer from the books of account of the assessee that a sum of Rs. 2,01,000 is not declared. In view of Explanation l(B) to section 271(1)(c) of the Act there is concealment of income by the assessee and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hen the assessee fails to offer an explanation or the explanation so offered is found to be false or the explanation is not proved and when the explanation is not bona fide to treat the same as deemed concealment of income. Explanation 1(B) to section 271(1)(c) of the Act is relevant for the purpose of this case and the same reads as hereunder: "(B) such person offers an explanation which he is not able to substantiate and fails to prove that such explanation is bona fide and that all the facts relating to the same and material to the computation of his total income have been disclosed by him." A reading of sections 271 and 271(1)(c) and the Explanation appended thereto manifestly makes it clear that every addition of income by the Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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