Concealment penalty upheld where admissions and conceded assessable income established concealed income under income-tax law.

Penalty under the Income-tax Act for concealment of income was sustained where the assessee did not dispute the addition of Rs. 2 lakhs and accepted the Revenue's concession that interest income of Rs. 64,042 remained assessable. On those admitted facts, the Tribunal treated the aggregate concealed income as Rs. 2,64,042 and upheld penalty under section 271(1)(c). The stated principle is that concealment or furnishing of inaccurate particulars can be inferred from admissions and conceded assessable income, and such material may support both the concealment finding and the penalty.

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Issues: (i) Whether the penalty imposed under section 271(1)(c) of the Income-tax Act, 1961 was sustainable on the facts found; (ii) Whether the assessee was guilty of concealment of income to the extent of Rs. 2,64,042.

Issue (i): The penalty provision is attracted where concealment of particulars of income or furnishing of inaccurate particulars is established. The assessee did not press the challenge to the addition of Rs. 2 lakhs and also accepted the Revenue's concession that interest income of Rs. 64,042 remained assessable. The Tribunal proceeded on these admitted facts in sustaining the penalty.

Conclusion: The penalty under section 271(1)(c) was rightly upheld, against the assessee.

Issue (ii): The assessee's non-prosecution of the appeal against the addition of Rs. 2 lakhs amounted to an admission of concealment to that extent, and the accepted concession regarding interest income further established concealment of Rs. 64,042. On the admitted position, the Tribunal was justified in treating the aggregate concealed income as Rs. 2,64,042.

Conclusion: The finding of concealment of income to the extent of Rs. 2,64,042 was upheld, against the assessee.

Final Conclusion: The Tribunal was correct in rejecting the reference application, and the tax case petition failed.

Ratio Decidendi: Penalty under section 271(1)(c) is sustainable where concealment is established on admitted facts, and such admissions can validly be used to uphold both the penalty and the finding of concealment.

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