Concealment penalty deleted where on-money was held collected for the principal company, not retained as assessee's income.

Penalty for concealment under section 271(1)(c) was deleted because the Tribunal found, on appraisal of the material, that the amount collected above the printed price of cigarettes was received on behalf of the principal company, part of it was used for business purposes, and the assessee did not appropriate it as its own income. The finding was treated as one of fact, supported by the assessment order and the settlement proceedings concerning the principal company. On those facts, the penalty was not justified and interference with the Tribunal's order was unwarranted.

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Issues: Whether the Tribunal was justified in deleting penalty imposed for concealment under section 271(1)(c) on the footing that the assessee had collected on-money on behalf of the principal company and had not concealed income for its own benefit.

Analysis: The Tribunal recorded, on appraisal of the entire material, that the amount collected over and above the printed price of cigarettes was received on behalf of the principal company, that part of it was utilised for business purposes, and that the assessee had not appropriated the amount as its own income. The finding was treated as one of fact, supported by the surrounding circumstances including the assessment order and the settlement proceedings relating to the principal company.

Conclusion: The penalty was not justified on the facts found, and no interference with the Tribunal's order was warranted.

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