Executive can make or change law of the land by way of
Explanations to Notifications without specific Authority from the
Signature Not Verified ... Income Tax Act, 1961. The petitioners-assessees also seek a
declaration declaring Explanations A(a)(ii)/A(b) to the Notification
particulars of his
income or had furnished inaccurate particulars of such
income. Explanation 1 to sub-Section (1) of Section 271
provides that where ... total income of any person, such person
fails to offer an explanation or offers an explanation which is
found to be false or he offers
assessee maintained for any previous year, and
assessee offers no explanation about the nature
and source thereof or the explanation offered ... Section, in case the
assessee has not been able to give satisfactory
explanation in respect of certain expenditure or where
any sum is found credited
found credited in its Books of Accounts. If the explanation proffered by the assessed is found not to be satisfactory, further enquiries can be made ... regarded as a capital receipt but if the assessed offers no explanation at all or the explanation offered is not satisfactory then, the provisions
added
it to the income of the assessee. The assessee's explanation was rejected by
drawing adverse inferences on the following reasoning:-
―(i) Mere ... assessee maintained for any previous year, and the
assessee offers no explanation about the nature and source
thereof or the explanation offered
section (1) read with Sub-section (3) and Clause (baa) of the Explanation below Sub-section (4C) thereto.
2. Section 80HHC was first inserted ... return of income, the report of an accountant, as defined in the Explanation below Sub-section (2) of Section 288 , certifying that the deduction
served except with the prior approval of the Chief
Commissioner of Customs.
Explanation : Where the service of the notice is stayed by an order ... counted from the
date of receipt of such information of payment.
Explanation 2. For the removal of doubts, it is hereby declared that
the interest
truly all material facts necessary for his
assessment for that assessment year.
Explanation 1.--Production before the Assessing officer of
account books or other evidence ... necessarily amount to
disclosure within the meaning of the foregoing proviso.
Explanation 2.--For the purposes of this section, the
following shall also be deemed
assessee maintained for any previous year, and assessee
offers no explanation about the nature and source thereof
or the explanation offered ... Section, in case the assessee has not
been able to give satisfactory explanation in respect of certain
expenditure or where any sum is found credited
share capital of the assessee. The AO sought an
explanation of the assessee about this addition in the share capital. The
assessee vide letter dated ... 13th August, 2003 offered a detailed
explanation.
3. However, according to the AO, the assessee failed to explain the
addition of share application money from
