Law: Income Tax Act, 1961

Section: 64

Income tax---Penalty Concealment of income Return of income Assessee partner in two firms including amongst other her spouse and minor children No column prescribed in return for showing shares of spouse and minor children but Note appended in the form requiring such declaration Failure to show in return of income share of profits of spouse and minor children Assessee, held, guilty of concealment and penalty exigible Words "Total income", "his income", meaning of. V. D. M. Rm. M. Rm. Muthiah Chettiar v. Commissioner of Income tax (1969) 74 I T R 183 (S C) ref. JUDGMENT BHAGWATI, J. This appeal arises out of proceedings initiated by the revenue authorities for levying penalty on the assessee. The assessee is a lady and during the assessment Year 1964 65, for which the relevant accounting Year was the calendar Year ended 31st December, 1963, the assessee was a partner in two partnership firms, Messrs Malabar Tile Works and Messrs Malabar Plywood Works, and along with her there were other partners including her husband and minor daughter. The assessee filed a return of income for the assessment Year 1964 65 showing Rs. 4,754 as income from property and Rs. 4,748 as income from other sources. The assessee stated in the return under the column "Profits and gains of business and profession" (against item b) which required share in the profits of a registered firm to be shown "Please ascertain from the firms' files the Malabar Tile Works and Malabar Plywood Works". The assessee, however, did not show in the return the amounts representing the shares of her husband and minor daughter in the firms of Messrs Malabar Tile Works and Messrs Malabar Plywood Works though they were clearly includible in computing the total income of the assessee under section 64, subsection (1), cls. (i) and (iii) of the I. T. Act, 1961. The I. T. n. while making the assessment included the amounts representing the shares of the assessee's husband and minor daughter in the profits of these two firms in the assessment of the assessee and taxed the assessee on a total income of Rs. 59,506 after including these amounts. Since the assessee had not shown these amounts as forming part of her total…

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