Concealment of income and tampered books justified penalty where suppressed sales were proved by evidence.

Tampering in the books of account and evidence of understated sales supported a finding of concealment of income under section 271(1)(c) of the Income-tax Act, 1961. Because the assessee had not disclosed income attributable to the suppressed sales, the court held that concealment was established on the available evidence. The penalty was therefore held leviable, and the question was answered in the affirmative against the assessee.

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Issues: Whether there was evidence to sustain the finding of concealment of income so as to justify the imposition of penalty under section 271(1)(c) of the Income-tax Act, 1961.

Analysis: The books of account showed tampering with figures, and the understatement of sales was supported by evidence. The assessee had not disclosed income attributable to the suppressed sales, and the concealment was not a case where absence of evidence could be said to exist.

Conclusion: The finding of concealment was upheld and the penalty was held to be leviable. The question was answered in the affirmative and against the assessee.

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