Law:

Section:

Section 271(1)(c) of the income-tax act, 1961-Penalty-For concealment of income-For assessment year 1965-66, assessee did not disclose in his return of income share income received by his minor son from a firm in which he was also partner-No separate column in relevant return form for showing income arising to spouse or minor child though there was a footnote which required mention of such income-Whether assessee guilty of concealment of income or furnishing inaccurate particulars of income in not showing share income of his minor son in his return-Held, on facts, no Facts In his return of income for the year 1965-66, the assessee failed to disclose in his return the share income received by his minor son from a firm in which the assessee was also a partner. There was no separate column in the form of return [as it stood prescribed before 1-4-1972] for showing the income arising to spouse or minor child though there was a footnote which required mention of such income. In the penalty proceedings initiated under section 271(1)(c), the IAC found the assessee guilty of concealment of income and imposed penalty on him. On appeal, the Tribunal held that there was no obligation on the assessee either under section 64 or under section 139 to disclose in his return the income of his minor son from admission to the benefits of the partnership. Accordingly, it set aside the penalty order. On reference : Held The question involved in the instant case stood covered by the of the Supreme Court in the case of V.D.M.RM. M. RM. Muthiah Chettiar v. CIT [1969] 74 ITR 183, wherein it was held that even if there were any printed instructions in the form of the return requiring the assessee to disclose the income received by his wife and minor child from a firm of which the assessee was a partner, there was, in the absence in the return of any head under which the income of the wife or minor child could be shown, no obligation on the assessee to disclose this item of income, and the assessee could not be deemed to have failed or omitted to disclose fully and truly all material facts necessary for his assessment. Consequently, the assessee was not guilty of concealment of his income…

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