Belated return treated as non est cannot trigger concealment penalty; limitation bar under section 34(3) remains.

A belated return filed after four years from the close of the assessment year is treated as non est and cannot be used to invoke section 28(1)(c), which applies only where a return exists and there is concealment or furnishing of inaccurate particulars. Section 28(1)(a) instead covers failure to furnish a return in response to statutory notice, and the scheme of section 28 indicates that clauses (b) and (c) presuppose a valid return. On that basis, a return that is not valid in law cannot displace the bar of limitation under section 34(3), and proceedings based on such a return remain confined to section 28(1)(a).

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Issues: Whether a return filed after the expiry of four years from the close of the assessment year, and treated as non est in law, could attract clause (c) of section 28(1) so as to exclude the bar of limitation under section 34(3), or whether such a case fell only under section 28(1)(a).

Analysis: The Court held that section 28(1)(a) deals with failure to furnish a return in response to the statutory notice, whereas section 28(1)(c) is directed to concealment of particulars of income or deliberate furnishing of inaccurate particulars in a return that has been filed. Where no return exists in law, the expression relating to concealment of particulars in clause (c) is inapposite. The scheme of section 28, including the manner of computing penalty, also indicated that clauses (b) and (c) presuppose the existence of a return. On that basis, the Court held that a belated return, which cannot form the basis of a lawful assessment and is non est, cannot be treated as a valid return for invoking section 28(1)(c). Such cases are mutually exclusive and fall only within section 28(1)(a), with the result that the protection of section 34(3) is not displaced.

Conclusion: Section 28(1)(c) does not apply where no return has been filed in law, and the assessment made beyond the period of four years was barred by limitation.

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