Penalty for concealment is governed by the law in force when the return was filed, not when proceedings began.

In penalty proceedings for concealment or misstatement under section 271(1)(c), the governing law is the law in force when the return containing the concealment or misstatement was filed, not the law in force when penalty proceedings were initiated. The Court treated the delinquency as linked to the return itself, including an original or revised return, so the penalty had to be computed by reference to the law applicable on that filing date. The issue was resolved in favour of the assessee.

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Issues: Whether the amount of penalty imposable under section 271(1)(c) was to be determined by the law in force on the date of filing of the return containing the concealment or misstatement, or by the law in force on the date when penalty proceedings were initiated.

Analysis: The Court followed its earlier decision holding that, in penalty matters for concealment or misstatement, the relevant law is the law in force when the return was filed. The date of initiation of penalty proceedings is not the governing date for computing the penalty, because the delinquency is linked to the return in which the concealment or misstatement occurred.

Conclusion: The amount of penalty imposable had to be worked out on the basis of the law in force at the time of filing the return, whether original or revised, that contained the alleged concealment or misstatement. The issue was decided in favour of the assessee.

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