Concealment penalty upheld where assessed income exceeded returned income and the assessee failed to rebut the statutory presumption.

Penalty for concealment of income under Section 271(1)(c) was upheld because the Tribunal found the case fell within the Explanation, as assessed income exceeded returned income by more than 20 per cent. It also held that the assessee failed to discharge the burden of showing absence of fraud or gross or wilful negligence and produced no material creating doubt in its favour. On that basis, the penalty was confirmed and the issue was answered in favour of the Revenue.

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Issues: Whether the Tribunal was justified in confirming the penalty imposed under Section 271(1)(c) of the Income-tax Act, 1961 for concealment of income.

Analysis: The reference arose from a penalty order. The Tribunal re-examined the matter on the penalty record and found that the case fell within the Explanation to Section 271(1)(c) as the assessed income exceeded the returned income by more than 20 per cent. It further found that the assessee failed to discharge the onus to show absence of fraud or gross or wilful negligence and produced no material creating a doubt in its favour.

Conclusion: The penalty was rightly upheld; the question was answered in the affirmative in favour of the Revenue and against the assessee.

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