Concealment penalty sustained where inaccurate particulars were furnished and related association assessment did not affect liability.

Penalty for concealment of income under section 271(1)(c) was held sustainable where the assessee had not furnished correct particulars and the income earned in the name of the concern was assessable in his hands. The authorities maintained the concealment finding on admitted facts, and the consequential penalty was upheld. The related assessment of an association of persons did not alter the position, because the finding that the firm was not genuine had attained finality and did not dilute liability for furnishing inaccurate particulars for the relevant year. The reference was answered against the assessee and the penalty was sustained.

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Issues: (i) Whether the Income-tax Appellate Tribunal was correct in upholding the levy of penalty for concealment of income under section 271(1)(c) of the Income-tax Act, 1961. (ii) Whether the assessment on an association of persons had any effect on the levy of penalty.

Issue (i): Whether the Income-tax Appellate Tribunal was correct in upholding the levy of penalty for concealment of income under section 271(1)(c) of the Income-tax Act, 1961.

Analysis: The assessee had not furnished the correct particulars of income, and the income earned in the name of the concern was held to be assessable in his hands. On the admitted facts, the finding of concealment and the consequential penalty were maintained by the authorities below.

Conclusion: The levy of penalty under section 271(1)(c) was rightly upheld.

Issue (ii): Whether the assessment on an association of persons had any effect on the levy of penalty.

Analysis: The finding that the firm was not genuine had attained finality, and that circumstance did not dilute the assessee's liability for furnishing inaccurate particulars of income for the year under consideration.

Conclusion: The assessment on the association of persons did not affect the levy of penalty.

Final Conclusion: The reference was answered against the assessee and the penalty was sustained.

Ratio Decidendi: Where the assessee has furnished inaccurate particulars of income and concealment is established on admitted facts, penalty under section 271(1)(c) is sustainable notwithstanding the related assessment position of the concern.

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