Concealment penalty applies under the law in force when omission occurs, and original-return nondisclosure fixes the default date.

Penalty for concealment under section 271(1)(c) was held to be governed by the law in force on the date the concealment occurred, so the pre-amendment law applied because the original returns were filed before 1 April 1976. The concealment of contract receipts was complete when the original returns omitted those receipts, and the later revised returns and reassessment did not change the date of default. The reference was answered in favour of the Revenue and against the assessee on both issues.

---

---

Issues: (i) Whether penalty for concealment under section 271(1)(c) of the Income-tax Act, 1961 was governed by the law in force prior to the amendment with effect from 1 April 1976 when the original returns were filed before that date; (ii) whether the default of concealment of contract receipts was committed when the original returns were filed.

Issue (i): Whether penalty for concealment under section 271(1)(c) of the Income-tax Act, 1961 was governed by the law in force prior to the amendment with effect from 1 April 1976 when the original returns were filed before that date.

Analysis: The governing rule is that penalty for concealment is attracted by the law in force on the date when the concealment takes place. Since the assessees original returns concealing the contract receipts were filed before 1 April 1976, the pre-amendment law remained applicable.

Conclusion: The answer was in the affirmative and against the assessee.

Issue (ii): Whether the default of concealment of contract receipts was committed when the original returns were filed.

Analysis: The contract receipts were not disclosed in the original returns, and the concealment was complete at that stage. The later revised returns and reassessment did not alter the point at which the default occurred.

Conclusion: The answer was in the affirmative and against the assessee.

Final Conclusion: The reference was answered in favour of the Revenue, with both questions decided against the assessee.

Ratio Decidendi: For concealment penalties, the applicable law is the law in force on the date of concealment, and concealment is committed when the omission occurs in the original return.

---