Concealment penalty survives criminal acquittal where revenue records independently support levy and proceedings serve distinct statutory purposes.

Penalty under section 271(1)(c) and prosecution under section 276C of the Income-tax Act serve different statutory purposes: the former is a civil levy to protect revenue, while the latter is punitive and depends on wilful concealment. An acquittal in the criminal case did not, by itself, invalidate the concealment penalty where the penalty had already been imposed and was independently supported by the assessment record and appellate findings. No issue estoppel arose because the criminal verdict was not based on the same evidentiary foundation as the penalty proceedings. The penalty therefore remained leviable despite the acquittal.

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Issues: Whether acquittal in a prosecution under section 276C of the Income-tax Act, 1961, or the finding that the revised return was voluntary, invalidated the penalty levied under section 271(1)(c) of the Income-tax Act, 1961.

Analysis: Penalty under section 271(1)(c) is a civil liability directed to protecting revenue, whereas prosecution under section 276C is punitive and requires wilful concealment. The two provisions operate in different fields, and section 276C is expressly without prejudice to other penalties. Since the penalty was imposed before the prosecution and was supported by the record before the Assessing Officer and the appellate authorities, the subsequent acquittal did not erase the earlier finding of concealment. No issue estoppel arose on these facts, because the criminal verdict was not based on the same evidentiary foundation as the penalty proceedings.

Conclusion: The acquittal in the criminal case did not affect the validity of the penalty, and the penalty under section 271(1)(c) remained leviable.

Final Conclusion: The reference was answered against the assessee and in favour of the Revenue, with the Tribunal's view sustaining the penalty affirmed.

Ratio Decidendi: An acquittal in prosecution for wilful concealment does not, by itself, nullify a penalty for concealment under section 271(1)(c) when the penalty is independently supported by the revenue record and the two proceedings serve distinct statutory purposes.

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