Law: Income Tax Act, 1922

Section: 8(1A),8(3)

Income-tax Act (XI of 1922)---Ss. 8 (1-A) & (3)-Concealment-Penalty-Neither any conscious and deliberate element of wilful negligence nor assessee found to be guilty of any fraud-No concealment -Word "conceal", meaning of--Concealment -- Burden of proof - Concealment how established-Reopening of assessment and concealment, being two separate matters to be dealt with on independent merits. C. I. V. v. A....A... 1970 I T R 696 and 1981 P T D 119 ref. ORDER MIAN ABDUL KHALIQ (MEMBER).-Against the order of the learned A. A. C. of Income-tax, Range-E, Lahore, pertaining to charge year 1975-76, the assessee is aggrieved of the penalty imposed at Rs 2,509 under section 28(1-A) of the Repealed Income-tax Act, 1922 (hereinafter referred to as the 'Act'). 2. The brief facts are that the appellant who is an existing assessee filed return for the year under review declaring net income of Rs. 6,729 from business- of sweetmeats. Originally the appellant's income was assessed at Rs. 19,440 vide assessment processed on 12-1-1976. Thereafter on receipt of report of the Vigilance Wing regarding investment made by the appellant in a Cinema, the I. T. O, re-opened the assessment. After holding enquiry the appellant's nit income was determined at Rs. 59,190 vide order dated 30-6-1979. The I. T. O. issued notice under 'section 28(3) of the Act for furnishing inaccurate particulars- of income. In reply thereto the appellant stated that there was no concealment of income and re-assessment was just a change of opinion on the basis of presumption and suppositions. A penalty of Rs. 5,000 was imps. On appeal quantum of assessed income being excessive was reduced and as a result imposed penalty was also reduced by the learned A. A. C. to Rs. 2,509, 3. On behalf of the appellant, it was contended that provisions of section 28(3) of the Act were not attracted in the farts acid circumstances of the instant case .as there did not exist any element of concealment. Case of the appellant's A. R. was that for the purposes of business income there being no accounts it was merely a change of opinion regarding existence of business. It was argued that no element of circumstances was involved as…

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