Concealment finding extended limitation for assessment; unexplained income and cash credit brought the case within section 28(1)(c).

Unexplained omission of share income and an unexplained cash credit justified a finding of concealment, so section 28(1)(c) applied to the assessment and extended the limitation period. The absence of an actual penalty did not prevent reliance on that provision at the assessment stage, and the plea based on disruption of the Hindu undivided family was immaterial because the reference concerned limitation for assessment, not penalty. The assessment was therefore not barred by limitation.

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Issues: Whether the assessment for the assessment year 1951-52 was barred by limitation under section 34(3) of the Indian Income-tax Act, 1922, or whether the case fell within section 28(1)(c), attracting the longer period of limitation.

Analysis: The assessee had not disclosed the share income from the firm in the return and offered no satisfactory explanation for the omission. As regards the cash credit of Rs. 10,000, no explanation of its source was furnished even after opportunity was given. On these facts, the concealment finding was justified. The fact that no penalty was actually levied did not affect the applicability of section 28(1)(c) at the assessment stage. The plea based on disruption of the Hindu undivided family was also immaterial, because the reference concerned the applicability of section 28(1)(c) to the assessment, not the levy of penalty.

Conclusion: The assessment was not barred by limitation, because section 28(1)(c) applied, and the question was answered against the assessee.

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