Law:

Section:

Section 271(1)(c) of the Income-tax Act, 1961 - Penalty - For concealment of income - Assessment years 1985-86 to 1987-88 - Whether merely because a return is revised, that fact, by itself, cannot lead to any presumption as to concealment in original return of income, because Legislature itself has provided for furnishing a revised return in case of any omission in original return, albeit such omission has to be inadvertent and bona fide - Held, yes - Whether where such omission is intentional, revised return cannot absolve an assessee from presumption as to concealment of income in original return of income - Held, yes - After original assessments of assessee for relevant assessment years had been completed, a survey was conducted upon it and on verification certain purchases made by it did not appear to be genuine - Statement of chairman-cum-managing director of assessee was also recorded - Before said proceedings could be finally concluded, assessee filed revised returns for all three assessment years disclosing additional income in relation to purchases made from certain parties - Assessing Officer, by issuing notice under section 148, regularized said returns and completed reassessment for said years - He also imposed penalty under section 271(1)(c) upon assessee - Whether, on facts, it could be said that assessee filed revised return voluntarily and in good faith - Held, no - Whether factum of concealment stood established on facts of case and, therefore, penalty was rightly levied upon assessee - Held, yes FACTS For the assessment years 1985-86 to 1987-88, the Assessing Officer had completed the original assessments of the assessee under section 143(3). Subsequently, the competent authority conducted a survey upon the assessee and on verification, certain purchases made by it did not appear to be genuine. The statement of the chairman-cum-managing director of the assessee-company was also recorded on 21-9-1988. However, before the said proceedings could be finally concluded, the assessee filed a declaration under section 273A disclosing additional income of Rs. 54,71,463 in relation to said purchases for the assessment year 1985-86. On the same day,…

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