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2007] 292 ITR 86 [2007] 163 TAXMAN 675 (KAR.) HIGH COURT OF KARNATAKA Commissioner of Income-tax, Bangalore v. Master Sunil R. Kalro R. GURURAJAN AND ANAND BYRAREDDY, JJ. IT REFERRED CASE NO. 9 OF 2000 APRIL 19, 2007 Section 271(1)(c), read with section 2(31), of the Income-tax Act, 1961 - Penalty - For concealment of income - Assessment year 1983-84 - Whether a minor cannot said to be a person for purpose of section 271(1)(c) - Held, yes - Whether a minor cannot be saddled with any penalty for any omission and commission committed by others acting on behalf of minor - Held, yes Section 271(1)(c), read with Chapter XV, of the Income-tax Act, 1961 - Penalty - For concealment of income - Assessment year 1983-84 - Assessee, a minor, claimed that he had received gift from two persons - Assessing Officer holding that gifts were not genuine made addition under section 68 - Assessing Officer, thereafter, observing that representative assessee could not bring on record any material to suggest that it was not really income that was concealed by assessee, imposed penalty on representative assessee -Tribunal quashed penalty holding that penalty could not be levied on representative assessee - Whether interpretation placed by Tribunal could be accepted - Held, no - Whether interpretation of Tribunal if accepted, would result in representative acting contrary to statute and get over levy of penalty - Held, yes - Whether it would be proper to direct Tribunal to reconsider liability of representative assessee in light of Chapter XV - Held, yes Words and Phrases : 'His income' as occurring in section 271(1)(c) of the Income-tax Act, 1961 FACTS The assessee, a minor, claimed that he had received gifts from two persons, 'A' and 'M' residents of Singapore. The Assessing Officer, observ-ing that there was no confirmation of donors, treated said gifts as income under section 68. The addition was upheld by the Commissioner (Appeals). The Tribunal and the Court rejected the claim of the assessee. Thereafter, the Assessing Officer observing that the recipient was a minor and, therefore, he could have received gifts from someone who was known to the legal representative. The Assessing…

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