Tribunal and High Court rule in favor of assessee, no concealment of income found

The Tribunal allowed the appeal of the assessee, holding that there was no concealment of income as the assessment was based on revised returns filed after a survey. The order levying penalty under section 271(1)(c) was quashed by the Tribunal. The High Court upheld the Tribunal's decision, stating that the finding of no concealment was a factual finding with no referable question of law.

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Issues involved: The judgment involves the cancellation of penalty under section 271(1)(c) of the Income-tax Act, 1961 and the question of whether the assessee concealed the particulars of its income.

Cancellation of Penalty under Section 271(1)(c): The Commissioner of Income-tax filed a petition seeking a mandamus directing the Income-tax Appellate Tribunal to refer questions of law regarding the cancellation of penalty levied under section 271(1)(c). The Tribunal allowed the appeal of the assessee, holding that there was no concealment of income as the assessment was based on revised returns filed after a survey. The order levying penalty was quashed by the Tribunal.

Concealment of Income: The assessee originally disclosed income for certain assessment years, but after a survey, revised returns were filed showing significantly higher income. The Assessing Officer imposed penalties for concealment of income based on the revised returns filed after the survey. The Commissioner of Income-tax (Appeals) upheld the penalty, but the Tribunal, on appeal by the assessee, found no concealment and quashed the penalty order. The Revenue filed a petition requesting the Tribunal to refer questions of law, but the High Court upheld the Tribunal's decision, stating that the finding of no concealment was a factual finding with no referable question of law.

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