2002 PTD 1082

Case Laws / Head Notes / Paras

Deemed concealment under Explanation/Notice for imposition of penalty--Specific reference to Explanation dealing with deemed concealment not necessary/Indian Income Tax Act, 1961, S.271(1)(c). Expln. 1. cl. (B)-[ CIT, v. P.M. Shah (1993) 203 ITR 792 (Bom.) and CIT v. Dharamchand L. Shah (1993) 204 ITR 462 (Bom.) overruled].Though the assessee, a firm, had taken certain bank drafts for payments to suppliers of rice in Andhra Pradesh, it had made the entries in its accounts not on the dates on which they were obtained but a few days later. The explanation of the assessee was that sufficient cash balance was not available on those dates, it had obtained hand loans from friends, and, as it had expected to repay such loans within a short time. no entries were made in its books of account in res...