Penalty for concealment upheld where unexplained investment and inadequate income disclosure were left unrebutted by the assessee.

Penalty under section 271(1)(c) was sustained where a Hindu undivided family carrying on money-lending business maintained no books of account, the Tribunal found an unexplained investment of Rs. 23,000, and the assessee had disclosed only Rs. 13,900 as income. In the absence of any plausible explanation to dislodge the finding of concealment or inaccurate particulars, the levy of penalty was upheld and the reference was answered in favour of the Revenue.

---

---

Issues: Whether the Tribunal was right in law in upholding the levy of penalty of Rs. 23,000 under section 271(1)(c) of the Income-tax Act, 1961.

Analysis: The assessment year was 1975-76. The assessee, a Hindu undivided family carrying on money-lending business, maintained no books of account. The Tribunal had upheld an unexplained investment of Rs. 23,000 and found that the assessee had disclosed only Rs. 13,900 as income. No plausible explanation was furnished before the Tribunal to dislodge the penalty finding.

Conclusion: The levy of penalty was upheld and the question was answered in the affirmative, in favour of the Revenue and against the assessee.

---