1980 (8) TMI 38 - HC - Income Tax

Tribunal upholds penalty for non-disclosure of income in revised returns

The Tribunal upheld the penalty under section 271(1)(c) for non-disclosure of income in the original return. The revised returns were not considered ... Concealment, Penalty Issues Involved:1. Justification of applying provisions of section 271(1)(c) of the Act.2. Concealment of income due to filing revised returns.3. Material for Tribunal to hold knowledge of enquiries about the sale of import licence.Summary:1. Justification of applying provisions of section 271(1)(c) of the Act:The Tribunal upheld the penalty under s. 271(1)(c) for non-disclosure of Rs. 61,460, Rs. 50,810, and Rs. 3,200 in the original return. The assessee's conduct was found not bona fide, and the revised returns were not considered voluntary disclosures under s. 139(5). The court emphasized that the mere filing of a revised return does not negate the applicability of s. 271. The Tribunal's finding that the assessee was guilty of concealment of Rs. 61,460 was well-founded.2. Concealment of income due to filing revised returns:The assessee argued that the revised returns should negate the penalty. However, the court held that the revised returns did not meet the criteria of s. 139(5) as they were not bona fide. The Tribunal's inference that the assessee was concealing income was justified. For Rs. 50,810, the court found that the assessee discharged the burden under the Explanation to s. 271(1)(c), proving that the non-disclosure was not due to fraud or wilful conduct. Thus, no penalty was leviable for this amount.3. Material for Tribunal to hold knowledge of enquiries about the sale of import licence:The Tribunal inferred that the assessee must have known about the ongoing inquiries since 1968. The court found this inference reasonable and justified. The Tribunal's finding that the assessee was guilty of concealment for Rs. 3,200 was also upheld, as it was not challenged specifically.Conclusion:The Tribunal was justified in applying s. 271(1)(c) for Rs. 61,460. The assessee discharged the burden for Rs. 50,810, and no penalty was leviable. The finding of concealment for Rs. 3,200 was upheld. The parties shall bear their own costs.