Law:

Section:

Section 271(1)(c) of the Income-tax act, 1961-Penalty-For concealment of Income-Assessee-Firm, subsequent to assessments, made disclosure statement to commissioner under section 271(4a) disclosing some hundi loans and offered untaxed highest peak credits pleading for spreading the same over ten years period-In a later year assessee credited peak credit in its books of account under "disclosure capital account" in place of various loan amounts-Whether that amounted to admission of concealed income on assessee's partis envisaged under section 271(l)(c)-Held, on facts, no Facts For the assessment year 1957-58, the assessee-firm returned an income of Rs. 57,318. It was finally assessed on a total income of Rs. 73,477. Sometime in August 1965, it filed a petition before the Commissioner under section 271(4A) giving details of various credits in the names of hundiwalas from the accounting year ending 6-11-1953 to the accounting year ending 28-10-1965. It offered for assessment untaxed hundi loans, the peak credit of which was computed at Rs. 2,45,000 in the accounting year ending 28-10-1965 and requested that the same may be spread over a period of ten years. Relying on this evidence, the ITO reopened the assessment and completed it by including Rs. 95,000, which was the peak credit of hundi loans in that year as per the assessee's disclosure statement. The ITO also initiated penalty proceedings for this concealment under section 271(1)(c). In the course of these penalty proceedings eventually referred to the IAC under section 274, the assessee contended that since the addition of Rs. 95,000 was made on the basis of its disclosure petition, it could not be said to have concealed the particulars of its income. The IAC, however, levied a penalty holding that the credits in various hundi loan accounts were not genuine and they represented the assessee's own undisclosed income. On appeal, the Tribunal upheld the levy of penalty holding, inter alia, ( i) that, although there was no indication in the disclosure petition that the assessee-firm admitted to have concealed the disputed income, it was evident that the impugned sum was surrendered for the purposes of assessment;…

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