Law:

Section:

Section 271(1)(c) of the income-tax act, 1961-Penalty- For concealment of income- Whether penalty is leviable only with reference to return originally filed and not with reference to revised return filed in reassessment proceedings-Held, yes Facts After the assessments for the assessment years 1950-51, 1958-59, 1962-63 and 1963-64 of the assessee-firm were completed, certain documents and other materials were seized in a departmental raid on 22-10-1964. These documents showed that the assessee had concealed income. Reassessment proceedings by issue of notice under section 148 were commenced. The assessees then filed revised returns showing incomes as per assessments effected at the original stage but later offered concealed income by way of settlement under section 271(4A). The Commissioner, however, did not accept this offer and the ITO framed the reassessments and initiated penalty proceedings. The IAC concluded that concealment of income was clearly established and since the revised returns were filed after 1-4-1968, penalties were to be levied in accordance with law as it stood after its amendment with effect from 1-4-1968. On appeal, the Tribunal concluded that the concealment of income and the inaccuracy in furnishing of particulars took place long before 1-4-1968 and that, therefore, penalties were leviable as per the pre-amended provisions of section 271(1)(c). On reference : Held In Addl. CIT v. Joginder Singh [1983] 15 Taxman 569 (Delhi), where an identical question arose, it was held that in such cases the penalty provision as on the date of the first return filed for the year should govern and not the provision prevalent on the date of the filing of the revised return. Further, the observations of the Supreme Court in the case of N.A. Malbary & Bros. v. [CIT [1964] 51 ITR 295 impliedly mean that penalty for concealment of income or for furnishing inaccurate particulars of income is leviable only once for a particular assessment year. The Tribunal was, therefore, justified. Case review Addl. CIT v. Joginder Singh [1983] 15 Taxman 569 (Delhi) followed, N.A. Malbary & Bros. v. CIT [1964] 51 ITR 295(SC), Addl. CIT v. Onkar Saran [1979] 116 ITR…

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