Law:

Section:

Section 271(1)(c) of the Income-tax Act, 1961 - Penalty - For concealment of income - Assessment years 1972-73 to 1975-76 - Pursuant to search at premises of assessee, a doctor, and in view of statement of his accountant that assessee was not fully accounting for his receipts, he offered before Commissioner certain income to be assessed as his income for said assessment years over and above already declared in returns - Commissioner issued directions to Assessing Officer, accordingly, and also directed him to initiate penalty proceedings under section 271(1)(c) - Accordingly, Assessing Officer completed reassessments and imposed penalty - Commissioner (Appeals), however, set aside penalty which action was also confirmed by Tribunal - Whether since assessee himself estimated amount of income, which he had concealed, and had offered same as his income, concealment was clear and patent - Held, yes - Whether mere filing of revised returns after search in his premises could not exonerate him from liability for penalty - Held, yes - Whether, penalty was to be imposed according to law, as it stood on date of filing of original returns, and, therefore, penalty imposable was to be equal to amount of income concealed - Held, yes FACTS In a search conducted at the premises of the assessee-doctor, running a nursing home, his accountant gave a statement that the assessee was not accounting for 50 to 70 per cent of his receipts and that there was a large scale concealment. Thereafter, the assessee approached the Commis- sioner seeking settlement of his tax liability. He also furnished figure of accretion to wealth over income assessed and requested for spreading that amount to be assessed in the assessment years 1972-73 to 1976-77. He also stated that he should be saved from penalty and prosecution as he had filed the settlement petition in spirit of co-operation. The Commissioner directed the assessee to file his returns of income under section 147(a) and directed the Assessing Officer, accordingly, and also directed for initiation of penalty proceedings under section 271(1)(c). In pursuance of order of the Commissioner, the Assessing Officer completed the assessment…

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