Concealment penalty can extend to undisclosed deemed income under tax law when statutory conditions for levy are otherwise met.

Penalty under section 271(1)(c) of the Income-tax Act can apply where income deemed taxable under section 41(1) is not disclosed, because such deemed income falls within the statutory definition of "income" and is chargeable as part of total income under sections 4 and 5. The deemed character of the receipt does not, by itself, exclude the concealment provision. Accordingly, non-disclosure of section 41(1) deemed income can attract concealment penalty, provided the other statutory conditions for levy of penalty are also satisfied.

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Issues: Whether penalty under section 271(1)(c) of the Income-tax Act, 1961, can be levied for non-disclosure of income deemed to be income under section 41(1) of the Act.

Analysis: The definition of "income" in section 2(24) includes sums chargeable under section 41, and sections 4 and 5 show that deemed income is chargeable to tax as part of total income. Section 271(1)(c) applies where particulars of income are concealed or inaccurate particulars are furnished. Therefore, if income deemed under section 41(1) is not disclosed, the penalty provision is attracted, subject to satisfaction of the other statutory conditions for levy of penalty. The deemed character of the income does not, by itself, exclude the operation of the concealment provision.

Conclusion: Penalty can be levied under section 271(1)(c) for non-disclosure of income deemed to be income under section 41(1), if the other conditions for penalty are satisfied.

Ratio Decidendi: Deemed income included within the statutory definition of "income" is capable of concealment, and its non-disclosure can attract penalty under the concealment provisions if the statutory prerequisites for penalty are otherwise met.

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