Confirmation of addition by tribunal does not mean concealment of income or inaccurate furnishing of particulars of income

 RELEVANT PARAGRAPH
As per the provisions of section 271(1)(c) the penalty under this section is leviable if the AO is satisfied in the course of any proceeding under this Act that any person has concealed the particulars of his income or furnished inaccurate particulars of such income.

The penalty proceedings and the assessment proceedings both are different. Explanation 1to section 271(1)(c) in respect of any fact relating to the computation of total income states that the amount added or disallowed in computing the total income of an assessee shall be deemed to be the income in respect of which particulars have been concealed. This deeming provision for concealment is not absolute one.

Explanation 1 to section 271(1)(c) provides that an amount added or disallowed in computing the total income of a person falling under clause (A) or (B) of Explanation 1 refers to two situations in which presumption of concealment created by Explanation1 is available. The first situation is where the assessee, in respect of any facts material to the computation of his total income, fails to offer an explanation or offers an explanation which is found by the AO or the Commissioner to be false. The second situation is where the assessee, in respect of any facts material to the computation of his total income, offers an explanation which he is able to substantiate and also fails to prove that such explanation was bona fide and that all the facts relating to the computation of total income have been disclosed by him. The prescription available under Explanation I cannot be drawn unless the case of the assessee falls under either of the clauses, viz., clause (A) or clause (B).

The presumption under Explanation I is rebuttable and not conclusive. The assessee can submit the explanation as the onus shifted on the assessee to prove that he has not concealed the particulars of the income. The assessee in this case has duly submitted the explanation. No cogent material or evidence was brought to cur knowledge which may prove that the Revenue has detected the concealment or the explanation submitted by the assessee as false one. Even there is no material which may prove that the assessee was not able to substantiate its explanation. Merely the addition has been made in the assessment in our opinion the assessee can not be entrusted with the penalty by simply invoking Explanation I.

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