Case Law Details
DECIDED BY: ITAT, MUMBAI `H’ BENCH, MUMBAI, IN THE CASE OF: ITO Vs. Heaven Distillery Pvt. Ltd., APPEAL NO: ITA No. 742/Mum/2008, DECIDED ON May 14, 2010
RELEVANT EXTRACTS:
20. We have carefully considered the rival submissions and perused fie record. In order to consider the issue in dispute, it may be necessary to appreciate the scope and ambit of the provisions of section 271 (1) (c) read with explanations therein. Section 271 (1) (c) comes into play when an assessee concealed particulars of his income or furnished inaccurate particulars of such income. Explanation 1 to Section 271 (1) (cj is a deeming provision which enlarges the scope of expression “concealment” and “furnishing of inaccurate particulars of income”. It says that any amount added or disallowed in computing the total income shall be deemed to represent the income in respect of which particulars have been concealed. In other words, whenever an addition/disallowance is made, t]/e initial burden is upon the assessee to prove that it is not his concealed income or he has not furnished inaccurate particulars of such income. Explanation 1 to section 271 (1) (c) lays down the procedure to discharge the burden as under :
(a) when such person offers explanation and substantiates the same; or
(b) proves that all facts are on record and material to the computation of his total income have been disclosed and explanation is bonafide.
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