TMI Blog2006 (3) TMI 133X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elation to imposition of penalty imposed on the assessee by the Assessing Officer and later upheld by the Tribunal under section 271(1)(c) of the Act but by granting partial relief of reducing the penalty amount from Rs. 12,49,850 to Rs. 10,41,543. It is this imposition of penalty which is sought to be impugned by the assessee in this appeal contending, inter alia, and in substance that it is bad in law and hence could not have been imposed. So the question that really arises for consideration in this appeal is whether any case for imposition of penalty under section 271(1)(c) is made out? 4. At the outset we may consider it proper to quote as to how the Tribunal dealt with this issue while upholding the impugned penalty on the assessee und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation is whether any case is made out for upsetting the aforementioned finding recorded by the Tribunal? 6. Having heard learned counsel for the parties and having perused the record of the case, we are of the view that appeal has no merit and hence it is liable to be dismissed. 7. 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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