Penalty for Concealment of Income Based on Law at Original Return Filing

The High Court of Rajasthan held that penalty for concealment of income should be based on the law in place at the time of filing the original return, not a subsequent return filed in response to a notice under section 148. The Tribunal correctly imposed the penalty according to the law at the time of the original return. The decision aligns with past court judgments, and the reference was decided in favor of the assessee.

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The High Court of Rajasthan held that for the purpose of penalty for concealment of income, the law applicable is that prevailing on the date of filing the original return, not the subsequent return filed in response to a notice under section 148. The Tribunal was right in imposing the penalty according to the law existing when the original return was filed. The decision is in line with previous court rulings. The reference was answered in favor of the assessee.

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