Law: Income Tax Act, 1961

Section: 271(1)(c)

Income-tax -----Penalty---Concealment of income---Finding, that income from contract business had been concealed---Imposition of penalty was valid---Indian Income Tax Act, 1961, S.271(1)(c). The assessee filed returns for the assessment year 1967-68 showing Rs.2,723 as his income, and for the assessment year 1966-67 it was shown as Rs.3,692. Thereafter revised returns were filed. For the assessment year 1967-68, revised income was shown to be Rs.24,882 and in regard thereto, Rs.15,700 was shown as business income from contract and Rs.5,982 as income from share of profit from K. The materials on record showed that there was an investment of 86.30,000 of the assessee in the firm K and in the said firm, the assessee was a partner having 1/7th share of profit alongwith six other partners. This source of investment was disclosed to be (1) Rs.10,000 received as loans from his uncle, and (2) Rs.20,000 received from one A. The Income-tax Officer completed the assessment for the year 1966-67. When the return disclosed an income of Rs.23,435, with regard to an item amounting to Rs.6,000 there from as income from other sources, an addition of Rs.7,063 was made by the officer. On the other count, on Rs.10,850 as income from contracts, it was assessed at Rs.11,049. This was with refer lice to one receipt of Rs.16,258 for the work done with the executive engineer. It appeared that for the assessment year 1967-68, the amount of Rs.5,962 shown towards share of profit from K was increased to Rs.12,242. Apart from the above orders passed by the Income-tax Officer, the matter was referred to the Inspecting Assistant Commissioner for concealment of income for both the years. The assessee submitted his explanation. For the year 1966-67, a penalty of Rs.20,000 was imposed and for the year 1967-68, a penalty of Rs.30,500 was imposed. The Tribunal held that for the assessment year 1966-67, a penalty could not be levied. However, with regard to the assessment year 1967-68, the penalty of Rs.6,000 was sustained. The High Court considered the situation in CIT v. Mahim (1984) 149 ITR 737, and held that the filing of returns voluntarily would not exonerate the assessee from the penal…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492