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B. A. Balasubramaniam And Bros. Company v. Commissioner Of Income Tax

B. A. Balasubramaniam And Bros. Company v. Commissioner Of Income Tax

(Supreme Court Of India)

Civil Appeal Nos. 1515 to 1517 of 1985 | 22-01-1998

In these appeals the question involved relates to the interpretation of the Expln. to s. 271(1)(c) of the IT Act for the purpose of levying penalty on the concealed income. The High Court, on a reference having been made, has come to the conclusion that as the difference between the income assessed and the income returned was more than 20 per cent., therefore, the said Explanation became applicable and the ITO was justified in imposing penalty because the assessee had not been able to discharge the onus which was on it under the said Explanation. For the interpretation of the said provision we need to refer to three decisions of this Court, viz., CIT vs. Mussadilal Ram Bharose (SC) : TC 50R.474; CIT vs. K. R. Sadayappan TC 50R.795 and Addl. CIT vs. Jeevan Lal Sah TC 50R.973. In these decisions it has been clearly stated that with the incorporation of the Expln. to s. 271, the view which had been taken earlier in CIT vs. Anwar Ali TC 50R.276, no longer holds the field and it is for the assessee to discharge the onus as contemplated in the said Explanation. In view of the fact that in the instant case the onus has not been discharged, the High Court judgment calls for no interference. The appeals are accordingly dismissed but with no order as to costs.

Advocate List
  • Deokinandan Commissioner. K. M. L. Majele Assessee
Bench
  • HON'BLE JUSTICE B. N. KIRPAL
  • HON'BLE JUSTICE S. P. KURDUKAR
Eq Citations
  • (1999) 9 SCC 135
  • [2001] 116 TAXMAN 842 (SC)
  • AIR 1999 SC 2869
  • (1999) 157 CTR SC 556
  • [1999] 236 ITR 977 (SC)
  • LQ/SC/1998/107
Head Note

Income Tax — Penalty — Imposition of penalty on concealed income — Expln. to S. 271(1)(c) — Applicability of — Held, difference between income assessed and income returned was more than 20% — Therefore, Expln. to S. 271(1)(c) became applicable and ITO was justified in imposing penalty because assessee had not been able to discharge onus which was on it under said Expln.