Disclosure in Part IV of return defeats concealment penalty under section 271(1)(c) where income particulars are placed on record.

Disclosure of prize money receipts in Part IV of the return was treated as sufficient to negate concealment and furnishing of inaccurate particulars for penalty under section 271(1)(c) of the Income-tax Act, 1961. The earlier view applied was that disclosure in Part IV does not amount to concealment where the relevant income particulars are placed on record, so the Revenue's objection that the income was not fully and truly disclosed failed. On that basis, the penalty was cancelled and the assessee succeeded.

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Issues: Whether disclosure of prize money receipts in Part IV of the return absolved the assessee from the charge of concealment or furnishing inaccurate particulars of income so as to attract penalty under section 271(1)(c) of the Income-tax Act, 1961.

Analysis: The assessee had disclosed the prize money receipts in Part IV of the return. In light of the earlier view that disclosure of particulars in Part IV of the return does not amount to concealment, the disclosure was treated as sufficient to negate the statutory foundation for penalty. The Revenue's case that the amount was not fully and truly disclosed was therefore not accepted.

Conclusion: The Tribunal was right in cancelling the penalty, and the reference was answered in favour of the assessee.

Ratio Decidendi: Disclosure of the relevant income particulars in Part IV of the return prevents the finding of concealment or furnishing of inaccurate particulars for the purpose of penalty under section 271(1)(c) of the Income-tax Act, 1961.

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