TMI Blog1998 (2) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... ave been referred to us by the Income-tax Appellate Tribunal, Madras Bench "A" : "(i) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in cancelling the penalty imposed under section 271(1)(c) of the Income-tax Act, 1961 ? (ii) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the amount offere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee admitted that the amounts shown as borrowings were to be assessed as part of his income. The assessee's explanation was that it was not possible for him to ascertain the present whereabouts of those individuals and produce further documentary evidence to establish that those persons have given loans to the assessee. This prompted the Assessing Officer to hold that the assessee was guilty of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ead deliberately. It cannot be said that there is concealment even when all the figures had been reported and included in the assessment and even before any investigation made by the Department had shown prima facie that the assessee had been dishonest in reporting the income. The inference sought to be drawn by the Income-tax Officer from the admission of the assessee that the amount shown by him ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m the assessee agreeing to additions to his income, it does not follow that the amount agreed to be added was concealed income. There may be a hundred and one reasons for such admission, i.e., when the assessee realises the true position, it does not dispute certain disallowances but that does not absolve the Revenue from proving the mens rea of quasi-criminal offence." The Department had not prod ..... X X X X Extracts X X X X X X X X Extracts X X X X
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