Loss return and NIL assessed income do not attract concealment penalty under section 271(1)(c) on these facts.

Penalty under section 271(1)(c) was held not leviable where the return disclosed a loss and the assessment also resulted in NIL income. On those facts, the absence of positive assessed income meant that the penal provision was not attracted, and the amendment to Explanation 4(a) did not change that result on the case facts.

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Issues: Whether penalty under section 271(1)(c) of the Income-tax Act, 1961 can be levied where the returned income is a loss and the assessed income is NIL, in light of Explanation 4(a) and its amendment.

Analysis: The return had been filed showing a loss and the assessment also resulted in NIL income. On those admitted facts, the absence of positive assessed income meant that the penal provision was not attracted. The proposed question on the effect of Explanation 4(a) did not alter that conclusion on the facts of the case.

Conclusion: Penalty under section 271(1)(c) was not leviable where both the returned figure and the assessed income were loss or NIL income.

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