Law:

Section:

Section 271(1)(c) of the Income-tax Act, 1961 - Penalty - For concealment of income Where non-inclusion of cash compensatory support in original return filed by assessee was based on a decision of Special Bench of Tribunal and subsequently, in view of amendment brought by Finance Act, 1990 with retrospective effect that cash assistance was taxable, assessee filed revised return and included cash compensatory support (CCS) therein, act of assessee of non inclusion of CCS in original return could not be held to amount to 'concealment' A return was filed by the assessee without including therein cash compensatory support and non-inclusion was based upon a decision of a Special Bench of Tribunal, Delhi in the case ofGedore Tools India (P.) Limited v. IAC [1988] 25 ITD 193. Subsequently, the Finance Act, 1990, vide its section 28(iiib) brought about an amendment, with retrospective effect, that the cash assistance was taxable. In view of this amendment, the assessee voluntarily filed a revised return and included in the CCS therein. The Assessing Officer held that the non-inclusion of CCS in the original return amounted to 'concealment'. The Tribunal set aside the penalty on the ground that because the revised return was filed voluntarily and the earlier non-inclusion of CCS had a plausible cause, namely, the decision of the Special Bench, of Tribunal therefore, the act of the assessee could not be held to amount to concealment. Held that the deletion of penalty by the Tribunal was to be upheld. JUDGMENT We have heard learned counsel for the Income-tax Department as well as learned counsel for the respondent. A return was filed by the assessee without including therein cash compensatory support amounting to Rs. 65,61,640. The cash compensatory support is hereinafter referred to as the "CSS" for short. This non-inclusion was based upon a decision of a Special Bench of the Income-tax Appellate Tribunal, Delhi in the case of Gedore Tools India Private Limited v.IAC reported in [1988] 25 ITD 193 . Subsequently, the Finance Act, 1990, vide its section 28(iiib) brought about an amendment, with retrospective…

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