Anantharam Veerasingaiah & Co v. Commissioner Of Income Tax, A.p

ANANTHARAM VEERASINGAIAH & CO. COMMISSIONER OF INCOME TAX, A.P. April 15, 1980 [N. L. UNTWALIA, R. S. PATHAK AND E. S. VENKATARAMIAH, JJ.] Income Tax Act, 1961, Section 271(1)(c), scope of Penalty Proceedings irt quasi judicial and Burden of proof is on Revenue-Secret Profits or undisclosed income and their actual availability for application by the ass.esSfe-Power of the High Court in a Tax Reference case, explained. c The appellant, assessee is an Abkari contractor. It -filed a return of its in-come for the assessm1e-nt year 1959-60, disclosing a total turnover of Rs. 10,92,132/- and an income of Rs. 7,704/-. The Income Tax Officer did not accept the correctness of the return. He found that on 12th December, l95'i and 16th January, 1958 the excess of expenditure over the disclosed avail-able cash was Rs. 17,726/- and Rs. 65,066 respectively. He also noticed seve-· rat deposits, totalling Rs. 28,200, entered in the names of certain Sendhi shop~ D keeP'ers. The Income Tax Officer rejected the account books of the asscssee and his explanations for the· discrepancies thereof and estimated the assessee's income on an overall figure of Rs. 5,00,018. In appeal before. the. Appellate Assistant Commissioner and thereafter before the Income Tax Appellate Tribunal the assessee succeeded in getting the assessed income reduced to Rs. 1,30,00Ct in addition to the books profits. Penalty proceedings were taken against the assessee and the case, was referred to the Inspecting Assistant Commissioner, E who imposed a penalty of Rs. 75,000 under s. 27l(l)(c) of the Income Tax Act, 1961. On appeal by the assessee, the Appellate Tribunal held that there was no positive material to establish that the cash deposits represented con~ cealed inccime. In regard to th·e cash deficits, the' Appellate Tn"bunar noticed that for the assessment year 1957-58 an addition of Rs. 2,00,000 had been made to the book profits, and it observed that some part of that amount could have-been ploughed back into tho business. It held that an amount of Rs. 90,000' II' representing unledgerised cash credits of that year could be said to have been introduced in that year. Allowing the appeal, the. Appellate Tribunal set aside the penalty order made by the Inspecting Assistant Commissioner. On a reference to the High Court, at the instance of the Commfssioner of Income Tax, the High Court held that the Appellate Tribunal was not justi~ ficd, in holding that no -penalty was 1eviable·. Hence the appeal by special leave. Directing the Appellate Tribunal to take up the appeal under s:ection 260(1)' of the Income Tax Act, the Court HELD : An order imp-0sing a penalty is the· result of quasi criminal pro-ceedings. The burden of proof Ji;es on the Revenue to establish that the dis-puted amount represents income and that the assessee has consciously conceal-ed the particulars of his income or has deliberately furnished inaccurate parti-culars. It is for the Revenue to prove these ingredients before a penalty caru be imposed. [622B-C] HAA WARPATH Aeageat wos HrgayeCCic: ATART MITA, Wie TAT (M/s. Anantharam Veerasinghaiah and Company Commissioner of Income Tax, Andhra Pradesh)'(15. asta, 1980) ; (Fararfaafa wo Ue ‘gzarfaar, AITo VAo WISH AITgo Wao qHzwAzaq): mane afafran, 1961 (1961 #t.43)— art 271(1) (7)—fearat a§ ora —afea fangs aaifeatamat|sifraret ater faatica ae ga arere at afta eT aferaticafear ara fe saat watt afara ata sae a ees sa fearar@- Var waa a mfer afatiica seat 8, arfees-neq—prdarfgat sr afore grat 2 ate ga aaa F ag aria ae7mt wiz fa faareged waa fratfzal at ara & car saa aotaig at TawMTAt feat gat TawRt saat fafafeeaiaaa at §, taea-faart ox gat ¢ — aa: afe faater araietmga Wag facrg fara arat & fe we fafacz waafantfzal at ona 8, at anfea fanan aarfgat F ga foneml tad: fsatiae agl ara feat arat atfgd 3 aaae afafaaa, 1961 (1961 st 43)—atet 256— atfea fauan ataarfgat - sea rarer at fada—fraterafeniet giz ag faeng fasta: sat fie faaifidt a aaatara Bt aAmaMTe Fara @ ale saat fafrfeeat maa at zgaut set frond & stare ae afer ar afercifea feat atat—aaa afaen ere sae faa al saz fay at F FTAsad arated fafy aearal seq goa raraia at frafire 208©:Sema earataa facta afaat ©1981] 2 BAe fo qo fear star - dat feafa #, sea carataa wl aaa % avalat fafafran wa: ara ear ag(elaI—sa -aaa-aTT HTmae fay ara gaa & sat aw at alfa car argc fretfedt car araare Shares wIAy, 1956-60 ae Frater.ay & fag att azar faacoh age at, frat vat 10,-2,132BIG HT FA MTITTTT AT 7,704 BIT Ft aT sHe st1 aTHrafeard + ga faazoit at gear at adh arr) sat age car fe12 fearaz, 1957 At 16 TATT, 1959 THfee staTa THA FHTT SAA BT HifrsT BAM: 17,720-SIT MT 65,0668 F 1 Tarmg ft tar fa rte 8a frets farar att 26,200 era dat a,alaqa faet garraret & ary at fac'ag & 1 faaifedt er easctacorfe afas ex at ga ao Garrard aver sas oa TAT al TE THTHa alas aH, faeg F saat FaraA asta! Hr We-gi, edtarxmet feat war. ag araafern easdtacr ah far ee et fear cat azz,TIAMAT, Te FH AaarE fearwar ar, eedtareye fearaar 1 28,200BIN Hrye fretat F araea F fraifedarae cainfearfR 3Sfaafa % eq F gah ore ear alas THe F pageasdtacn sgt ayte Hr fear wa, Tatas Pega fratat ar farsrata 21,000 eteSlat at, araea ary array afepardt& faethe at ar-afgat ataedipa et et ate gar fraraxt fratfedtat ara 5,00,018 saesranfera al1 agree aged (ae) FateTea aTAHT aulaafrnwn & ane weqa ater F aah’ (weal) war-afgal F &aral & afatwa aval arr at1,530,000 wae aa ay Hat FTHA Bt Te at t frathtal% fares afer fears srsareat ar ws aleaaa aera aged (freer) at frafear fear mars vat ag naana fear fa faatfedtrath ara ay. fafafseat at agora 2 azsaal aaa fafinfscat et-%, atx alae. sar agar. atafaaa, 1961at arer 271 (1) (7) Frets. 75, 000 ere ay-anfer arfizetiaa ayfratfeat aver atta fe art ot,aderafrswr ag: afatratfeafear far ag arfag avr& fre args fafera~ ara-adl 2 fie anefatGs 1s are sae: ahaAATge aieafar F warren ages (fader) are fae ae arfea aeaedt area BY aTTETBT faa| AAHT MAT F ATTA TT as wT Gea UITAT Btfadfora frat mar fis zat anaFH aeatFe arare ge ate saatafefeafeat #, afanen at ag afafratica wear carattad g fe argat arfer seugtila ato? sea earateaT A ag afafratfca fearfe ada afraen ar ae afafaaiica azar earatfaa at ar far arga afer semecia agl eo sat fata H fase faatfedl a geqarratory H arita at; sarafea ea & area HWA BT, Section: CONCLUSION Since the burden of proof in a penalty proceeding varies from that in vol v-ed in an assessment proce~dings a finding in an assessment proceeding that a particular receipt is income cannot automatically be .adopted as a finding to that effect in the penalty proceeding. In the penalty proceeding the taxing au-thority is bound to consider the matter afresh on the material before it and, in the light of th{i burden to prove resting on the Revenue, to ascertain whether a particular amount is a revenue receipt. No doubt, the fact that the assess-ment order contained a finding that the disputed amount represents income constitutes good evidence in the penalty proceeding but the finding in the assessment proceeding cannot be regarded as conclusive for the purposes of the penalty proceeding. Before a penalty can be imposed the entirety of the cir-cumstances must be taken into account and must point to the conclusion that the disputed amount represents income and that the assessee has consciously concealed particulars of his income. or deliberately furnished ioaccurate parti-culars. The mere falsity o.f the explanation given by the asse.ssee is insuffi-cient without there being in additiun cogent material Or evidence from which the n~cessary conclusion attracting a penalty could be drawn. (622C-G] Commissioner of Income Tax, W&st · Bengal and Anr. v. Anwar Ali [ 1970] 76 J.T.R. 696; Commi~ioner of lncome Tax, Madras v. Khoday Eswarsa and Sons, [1972] 83 I.T.R. 369; applied. 2. Vlhen an 'intangible' addition is made to the book profits during an assessment proceeding, it is on the basis that the amount represented by that addition constitutes the undisclosed income of the assessee. That income al-though commonly described as 'intangible', is as much a part of his real income as that disclosed by his account books. It has the same concrete. existence. It could be available to the assessee as the book profits could be. [623A-B] afafaatica—aa ag afeaz fate & fs onfea afraid atearea Ble Ht aaa afesnag aratfeat sr afeora glare ate agalfaa eva ar art fs faaremer wHT ara 2 ate ae fe fraifedt ¥art araaret H arrat ara ay fafafeeatst Farad ar sraqeratwaa fafafezat dt &, ursea-faara ot atar 2 | anfea afardfaa facama & qa usea-frart at a ger area eet DTTFhe aferaraeat feat arta Haga at are fal faaten fasasasraaratpase VT a faa gta &, eafay feat frater frame arrardt# ga fasag at fe arg fafase sifta ara 3, afer araeet fretHlaatel F sat oad H faong FeT FT cag: sal agaay st THAT 1mifer araeet araaret H, wear wifrarey ay saat Tega al Tsara F arent 7x ag fat & area oe faart Hwa ¥ fay ate afarHA FAT Hy TAI EY, Ht eAea fant aestart Tar z, ga araat ofafeaa wet % fag fe ate fare waa caer stirs ar adalag @1 faeaae, ag aca fe fate ares % ag fasag aeafacrdrat & fx frarenea wea ara 2, afer araedt ardardt % wa sagarea afed azar 2, faeg fratin faaae ariardt ¥ ay frog lar@, 3a wife aeaeel araaral & satsvaret favarae ad amar aramar @ | fafa ar fraaa ag 3 fe ag ast at fafa & 1 og it afrafaafrat vat fa arg afer afadiea faq ot & qa, argo ofzfeafaatay cgrt H waar atfec ate saa ga frond at ate aha aar aifewfn. faaraaea THA are 2 att ag fF fraifedt & ata ana aqatara ar fafafcert at Garar g ar AAGHBT uaa fafafszat a 21ag aa afaered fear war fs fratfeat. aren faq aq easdtawor ar 210 = [1981] 2 eH fae qo ara faear erat feat Oat afafeaa fasaata aradt ar aren % faarfrat ag fafeaa frond fratar ar anat at fe mfer amg araaat %, arater ar 1 (Fzr 6) sa sfavaar 8 gar agl at awar @ fe qaax fratwa-adfaatfeal ater saifsa ger ara or safe ara fafes at andt 2, aag faarg ag et, frat a fratfedd exo qu aw & fac ar. actMar-afeat F cat agrface Hwfae are H ule fart asar 3freg ag Beat um Farge gt fret ate 2 fe ge fafls B Pret are aTAIT AT SITE cag SSTSH STH qaay aeqaadt fralw-ag Fata afafafes atd-am Sek aava gt aaa oar afervat fafa st soaegar & Zt, aned amet #, ag faafera vet start %fe faaifedt & gana fratzo-ag % eter afafeaa ga art sofawet far 81a at fafix at< a at aq aT aATAT ga ara a arealZar 2 fs ot frerifedt Prat fatcorad ¥ Peara cer 2, frat qeardadhfaatr-ag F sanr faraare alar fafeaa1 gets ara A Htsmifsardy ata aract ot faare azar tara fe aa andl ataaarg 7E Haat Tar THA FH ae A afeaqar wTFag Ber a AHA@ fe a faqrg aq aay at feet a-faanra fafa % ofeoracaed 2,at ag fa sat at ¥ onfaa fat gf ara % ofa fade wee sah art4 qfeagad a 8 aarar oT asa 8 i aetH Ae F awe aa aT aeTAT THAY-TAT FT aTea fas THA, are % faferse azat aan ofefeafaaiae aay BT a fare wey, afafafesa st oat afer1 ora a aeVar gar afer fad fe oe fafeaa frond fame ot ak fx Frathed& aet ara at fafafeeat at Bia § ea qragaar wera fatheradwaasa ara at aeuetat araqeaear wat & fe afer areal fxdifrH Vat ara at faeraraar at Fras ag frond frnaean ay, BUA BT MIT Tacs faa Tz Alar &1 (Fz 8) ate afsavos sat at ca cer an afar wea fats atafte & nadt at, fe at aqd afe A adad fraifedt &ag-art Fat ays alcag fe za difwa efeeaty a yeaaa BT A ATT TAT Aas sa al gata geal ate afefeaaat oz faare Hwa qt ate Bar aa @, fara aqara uaeafear F Ra ater BT TaaTTT BAB gated fray & fe tuaeqFaara age art ar Fraga wet F aa gar 21 (Fz 9) 3. Secret profits or undisclosed incon1e of an assessee earned in an earlier asses.sment year may constitl'lte a fund, even though concealed, from which the assessee may draw subsequently for meeting expenditure or introducing amounts in his account books. Any part of that fund need not necessarily be regarded as the source of unexplained expenditure incurred or of cash credits recorded during a subsequent assessment year. The mere availability of such a fund cannot, in all cases, imply that the assessee has not earned further secret profits during the relevant assessn1ent year It is' a matter for consideration by the taxing authority, in each case, whether the unexplained cash d.eficits and the cash credits can be reasonably attributed to a pre-existing fund of concealed pro-fits or they are reasonably exPJained by reference to concealed. income earned in that very year. In each case the true nature of the cash deficit and the cash cre-dit must be ascertained from an overall consideration of the particular facts and circumstances of the caSie. Evidence may exist to Show that reliance can-not be placed completely on the availability of a previously earned undisclosed. income. A number of circumstances of vital significance may point to the conclusion that the cash d.eficit or cash credit cannot reasonably be related to the amount covered by the intangibte: addition but must be regarded as pointing to the receipt of undisclosed inrome earned during the assessment year under consideration. It is open to -the Re1'enue to rely on all the circuDtances point-ing to that conclusion. What those seVeral circurmtanoes can be is difficult to enumerate and indeed, from the nature of the enquiry, it is alm0st impossible to do so. However, they must be such as can lead to the firm conclusion that th: assessee has concealed the particulars of his income or has deliberately fur-nished inaccurate particulars. [64.JCH, 624AJ Lagadapn Subha Ramiah v. Commissioner of Income Tax, Madras, [1956] 30 I.T.R. 593; S. Kuppuswami Mudaliar v. Commissioner of Income Tax, Madras, [1964] 51 I.T.R. 757; approved. In .an income tax reference, a High Court should co'nfine itself to deciding the question of law referred to it on facts found by the Appellate Tribunal. It is the Ap-pelJate Tribunal which has been entrusted with the authority to find facts. [624D-E] CIVIL APPELLATE JURISDICTION : Civil Appeal No. 2592 of 1972. Appeal by Special Leave from the Judgment and Order dated 9-11-1971 of the Andhra Pradesh High Court in Case Referred No. 4 of 1970. . S. T. Desai, T. A. Ramachandran, Mrs. !. Ramachandran and M. N. Tandon for the Appellant. S. C. Manchanda, Miss A. Subashini and D. B. Ahuja for the Respondent. The Judgment of the Court was delivered by PATHAK, J. This appeal, by special leave, is directed against a judgment of the Andhra Pradesh High Court, concerning the scope of s. 271(1)(c) of the Income Tax Act, 1961. Sea raTaTTT INT afracoy are farses ae aval F ara4re gzfadfna fafa & sea ar fafeeae wed aa at ahfaa war& 1 aaa:wast afafraa,1961 a are 271 (1) (4) & aT aa Fi%aaaed fafan faaradt ot fare wee aaa seq eqrotaa 3 aa eat ae frat HTH Ta Tea Fea AS Hr aaarcoy HH mah até f& fratheat & gaa gaadt ad & eter aa warfsa at at atzag 7g @ fe Cel arg a) Sart waar vaat aaa fafa 83 xait 81 4g frewd frat & qeaa fe ade afro & aren ¥arifafes fats arent srry wet ata al 8, eq aorag atFAST EIU JST AT THT HT VAT aHreeAH BF TH 8) AT-aTq FYafra waar aifga ar att 33 fier a ada ew % fav afsacotaX Bis aat afer ar aa yea carataT are afaafad fafer atUae} A sar Ga: aaa Hear afeT aT) atte afzacT ml etae araedt front frartt wr seferere ater mar 81 (der 10) aaaa facta {1972] [1972]1 34°fre qo 329=(1972) 83Blo zo Hito 369:| Bast OI,ANA TmatsSsacaq (Comissioner of Income-Tax, Madras y,Khoday Eswarsa and Sons); [1970] (1970) 76 argo do arte 696:: ataat oaed, ofeadt dma att us gayTTA ATT weir(Commissioner of Income-Tax, West Bengaland Another Vv. Anwar Ali).| |2. fratfrdt ga araard séare 21 wad (959-60 arafratzr-ag & fau aait aaa fare sea at, feat gad10,92,132 eg FT HAT eqrsreadt aie 7,704 wae at araTee Bt 1 east afsarel tga faacoht at qaar at adt ararsat ag orat far 12 fearaz; 1957 16 waa, 1958 aT wafeaSIT THAT F GIT saa aT afar sqm 17,720 ae ale65,066 BIT Ji Vat ag Weer fe aie da faethe Faas ate28,200 ery gtat ar, afar fast gare & ara ast faa ae Fyfratheat wr ag cacdtace fir afte eam at gfe ao sarAeTe areaS TAT TAT BT TETHAT Ta at agof, freq J saat Faradaot wat at ag ol, edtare aa fear mar 1 ag aqafers eaedteTwt fir ager & feat war eqa, cauraa:, ate F Aeag feat waraT,aearare BT feat WaT1 28,200 wae as aaa fred) ® araea Ffratfeal¥ ag eqsdtazr-faar fe & ofrafa % eq F vaR ota sarwaar ag frerat wad ar St far ag easdlwer att 21,000 agi aH wae te star HT at, fear araea aa, ar aat| aTTHT aH heafar’ # faatfedt attarateat ot aedtare ae a alte aa fratant faatfeat at ara 500,058eq sranfaa aY aziz AA AT(att) & alt eereg saat ate afr & ama gaa ahaa frathal (weal) warafgaha& oral & afafear acadt ara ay1,30,000 eIU aH HA HATA Fane at 7sal; fralfedl ¥ fewaifea fara arfarigatat 12 ate aTaat-agraen araaa (fader)ay facta fearwary fatal 4 gal eqsdtazoFt staat ait.saa faaten faseartarfgat & fear are star fis oem gf agar:a,afafraifea aelrs aged far fis (fret) aadt ata adh eqedtnw, &@ arafiga FY aedtare ud ate fear ane att frag aefoarg g& siftaal dar wearafgat & sfcafas fast at fase edi aatt arch fea ef aad1 gaat ag na cra Pear fe fautfeat 3art aa at fafarfeat at aqraré att saat aaa fafafseat df2, AX gafae saa araax afafaay, 1961 a are 271(1)(4) ¥aett 75,000 wae at mifea afadifad at i faethe erat adie faewa Tt, ada afar + ag afafaaifea fear fe ae afar wat% fag ate fafeaa aiadl adife age facia Gare TE NTS — aeelafaal F aaegadhe afanc F ena Hagarargs fH1957-58 are frafeo-agt % fac adt-ara # afra are H 2,00,000erg a afe at ag dy ale saa ag wa one fear fe sa THA FTAGATE HHTA Taal st AHaT St Gas aga afafratherfeat fe sa ag ¥ fac 90,000 wag at wan ® art ¥ a Aar-afeat & ata at ont are ga ad at andar ?, ag Fal aTanal & fase grag A aarfase feat aTaTs i ahaAgt Hwa ecaia afancr t aera arqaa(farcterr) aren fee we afer aeaeitAAT BY TIT Br far | 3. aaat at F aqua at farafafarwea gervarrera ayfadina fear var— AAT ATA F Feasae ge ae gaat sfefeafaay%, afasco at ag afafratica wear araifad 3 fe ars ayafer sauerta aay 3?”_ 4. seaaaa Fag afafrafia far fs. attr afsacor wt ag afafratiea azar caraifaa vat or fe arg it ofr serguitemat Z1 The assessee is an Abkari contractor. It filed a return of its income for the assessment year 1959-60, disclosing a total turnover of Rs. 10,92,132 and an income of Rs. 7,704. The Income Tax Officer did not accept the correctness of the return. He found tlmt on 12th December, 1957 and 16th January 1958 the excess of ex-penditure over the disclosed available cash as Rs. 17, 720 and Rs. 650,66 respectively. He also noticed several deposits, total-ling Rs. 28,200, entered in the names of certain Sendhi shop-keeper;. The assessee's explanation that the excess "expenditure was met from amounts deposited with him by some shop-keepers but not entered in his books was not accepted. The alternative explanation that expen-diture incurred earlier had possibly been recorded later was also rejected. In regard to the cash deposits of Rs. 28,200 the assessee explained that they represented amounts deposited with it as seeurity. That explanation was rejected insofar as deposits totalling Rs. 21,000 were concerned. The Income Tax ,Officer rejected the account books of the assessee and estimated the assessee's income on an overall figure of Rs. 5,00,018. In appeal before the Appellate Assistant Commissioner and thereafter before the Income Tax Appellate Tribunal, .the assessee succeeded in getting the assessed income reduced to Rs. 1,30,000 in addition to the book profits. Penalty proceeding were taken against the assessee and the case was referred to· the Inspecting Assistant Commissioner. The assessee reiterated the explanation which it had offered in the assessment proceedings. Predictably, the Inspecting Assistant Commissioner rejected the explanation and held that the items of cash deficit and cash deposits represented concealed income resulting from the suppressed yield and low selling rates mentioned in the books. He observed that the assessee had c:oncealed the particulars of his income and furnished inaccurate of it, and therefore imposed a penalty of Rs. 75,000 under s.271(1)(c) of the Income Tax Act, 1961. On appeai by the assessee, the Appellate Tribunal held that there was no positive material to establish that the cash deposits represented concealed income. In regard to the cash deficits, the Appellate Tribunal noticed that for the assessment year 1957-58 an addition of Rs. 2,00,000 had been made to the book profits and it observed that some part of that amount could have been ploughed back into the business. It held that an amount of Rs. 90,000 representing un!edgerised cash credits of that year cO\Jld be said to have been introduced in this year. Allowing the appeal, the Appellate Tribunal set aside the penaty order made by the Inspecting Assistant Conunis-sioner. At tbe instance of the Commissioner of Income Tax, the following question was referred to the High Court:- "Whether 011 the facts and in the circumstances of the case, the Tribunal is justified in holding that no penalty is leviable ?" The High Court held that the Appellate Tribunal was not justified in holding that no penalty W3.s leviable. In this appeal, it is nrged by learned counsel for the assessee that the High Court erred in interfering with a finding of fact, that the penalty proceedi'ngs being quasi-criminal the bnrden of proof lay on the Revenue to establish that a penalty was attracted and that the intangible addition of Rs. 2,00,000 represented real income and the Appelfate Tribunal was right in considering that an amount of Rs. 90,000 was available to cover. the cash deficits. Section 271(1) (c) of the Income Tax Act, 1961 provides:- 5. aa atte H, faraifedd & faarr arate § ga ara qx ITfear fe sea eararaa taey araedt ge frome F seqeta ach aadyaT aT, fas fas afer tare sitarfgatarfees-aq ait 2, zafarae aaa weafae fe arfer wars art 2 atx 2,00,000 weat afe arecfan ara d, aga Bt ae teres fasta x dae atteafaawn at ag waar dia ar fe aadt at afwar fora ®far90,000 eae at tHM saTTT st 6. aratafafaaa, 1961 a amet 271(1)(a4) # az srary frat qar #--| @“271(1) afe ga afefaare & at Predt ardarigat alert arnt afrard ar agree argad (attr) ar fadenfea & art % aarara at arar & fe— (7) saa araat ara at fafafezat at Aorar g arCatatm ata fe at tar vara safsa fafafszat afer dt 8 ea %, at F,, az ag aea wtar fatesz 1” ae gang ara gt ag stag Vat gar1 aa ae alert fafa s femifea afactiad wert arat alg at area atfesa-aq araarfeat arafemra gtat & att ag afar wet arare fe faategea wea ara@ are 7@ fa faaifeay + aaa ararard A agit ara ay fafafeeayal Gat g at ara Gar aaa fafafeert a3, cussed fear aeala 2 1 atant arava aaa ama alt cs Bea Fa GaaT Tatarat araat fati anfer afadfad fag at Fag wearer fratara oem arfaa wea alt &1 Ths afer aaah feat wriardt %aga ar are feel Frater faves srtaidtH aera er are a faraaltar 2, cafae feat frater fasae srgardt i ga facaq atfirwre fafarse orfta, rad, afer aeaeeht fact artardt F edt sarae frome & wy F eaqa: sal atarar ar a war afer aeaeat alaatar4, Suara crfaare aT Aaa Tega Bl TE AAA F arae qe arfat & araa oz faa wea & fae aie arfaa Hey B® are HY BaRgy, WT uses fanra at reat mas, ET aa wT afafeaa wa FHfag fa arg fate waa usteg site & ar val, ara a1 faaedz,ae ey fa faatca-area 4 ag frond aeafase gat & fe frareneawea ara g, afer aeaedt wrrardtFoR gaa ated afsa Hara, farg frater faqae arfardt t at fasee stars, va arfeaaearal Baas F ca aars FAvargsasl aaar a apart F1 saaaaa st BAAT Ae area aaa F fafa ar fraaa sal cart fear@ az ea favara gfe ag aatwt fafat ae dafenfaa fearmat fe arg afta afercfad fae art FH qa, aaot ofefeafaat ayena ¥ waar aifee ate gaa ga fasad at atte ata aar aferfa faaiaaea tae arg g ate ag fa faatfedta ataaaaat act aia ay fafafezat at gyorar g at sagan aaa fatafecat aeag na afaeaaa fearaar fa fratfedd are fea ae eqedlatq aTara favardat fadyodh afafeaafavaadta araay ar avez% faat faaa ag fafear faced fasrat st anata) fe aferMMs at anal z, araar, ga AITTAT FT aaRT alae ATTAaq ate fsatat wos ara are armaa aa faareal al searaqt. 7. sete are Harta afew spa RA ATaTT FTaaara fear § fe 1957-58 ate frateo-ag Ffau faatied %adt-ara 4 afm ara F 2,00,000 we al age afe at ae aatic gaa aa fasng fartfs 90,000 ergal waa gq ag Afad gare dara 2; catia F are arafaq grass dhga araa sare ad fear ot ana fe aa faateo faran ataardy Fdra aaeara H efwa aratorga” afe a ona, at ag zaarat&1 aaft ax at ga Tae ara at fe arara ga afe er 8 at “gag” waa fratfedd ara6a %atavafer afar Pear arawar &, fax dt ag saat areafaae ara HT Val THTIT ATH wT eyfaa wart gaat warafeal A oyHe HAGarr | sant aftaca Aysaat a areafas f 19g A fathead ar sah ware saa gt aad afaa sartaft-aa & afaa fae ava goneadast a)aratate geal Wear TATA BATHE Bllan, Aaa? aA way Fare Tag sea Tag a year aay aar fratfedl ara sain FTae sa & faa saat areatan saaesar Fea waa Fafa fatafear ary wale Gea eaTaTATa STAT BY ghee yaoHeqearetwafaare gary araRT aga, waeaT &. ga sfaqtaart & war aay or ana fe qdaz fraten ag faatfeadt ster gaifta yea ara at asafsa ara fafa ay aadt&, 21 £1972]1 £1972] £1972]1 Ho fto To 329= Ho fto To 329= fto To 329= To 329= 329== (1972) 83 AIFo to AITo 369. (1956) 30 BIg zo Alto 593. 21 £1972]1 £1972] £1972]1 Ho fto To 329= Ho fto To 329= fto To 329= To 329= 329== (1972) 83 AIFo to AITo 369. 3 (19¢4) 51 WTke eto BIXo 757. "271(1). If the Income Tax Officer or the Appellate Assistant Commissioner in the course of any proceedings under this Act is satisfied that any person- (c) has concealed the particulars of his income or deli-berately furnished inaccurate particulars of such income he may direct that such person shall pay by way of penalty, This is the provision as it stood at the relevant time, It is now settled law that an order impoing a penalty is the result of quasi-criminal proceeding and that the burden lies on the Revenue to establ.ish that the disputed amount represents income and that the assessee has consciously concealed the particulars of his income or c has deliberately furnished inaccurate particulars. Commissioner of Income Tax, West Bengal and Another v. Anwar Ali.(!) It is for the Revenue to prove those ingredients before a penalty can be imposed. Since the burden of proof in a penalty proceeding varies from that involved in an assessment proceeding, a finding in an assessment pro-ceeding that a particular receipt is income cannot automatically be D, adopted as a finding to that effect in the penalty proceeding. In the penalty proceeding the taxing authority is bound to consider the matter afresh on the material before it and, in the light of the burden to prove resting on the Revenue, to ascertain whether a particular amount is a revenue receipt. No doubt, the fact that the assessment order contains a finding t