Quasi-criminal penalty proceedings require the revenue to prove concealment, and record evidence supported taxation of the deposits.

In penalty proceedings under income-tax law, concealment must be established by the revenue because such proceedings are quasi-criminal in nature. The record showed that one fixed deposit receipt was reflected in the assessee's balance-sheet, both deposits were included in wealth-tax returns as assets of the assessee, there was no proof of a valid gift to the wife, and the funds were later used for the assessee's benefit. On those facts, the deposits were treated as belonging to the assessee and the related income as taxable in its hands, so the material supported the finding that no referable question of law arose from the Tribunal's order.

---

---

Issues: Whether, in penalty proceedings under the income-tax law, the revenue had discharged the burden of proving concealment of income in relation to fixed deposit receipts standing in the name of the assessee's wife, so that no question of law arose from the Tribunal's order.

Analysis: Penalty proceedings under section 28(1)(c) were treated as quasi-criminal, placing the burden on the department to establish concealment or deliberate furnishing of inaccurate particulars. The material on record showed that one fixed deposit receipt had been reflected in the assessee's balance-sheet, both receipts had been included in wealth-tax returns as assets of the assessee, there was no proof of a valid gift to the wife of the coparcener, and the amounts were later used for the assessee's benefit. These circumstances were sufficient to show that the deposits belonged to the assessee and that the income from them was taxable in its hands. Since the factual foundation for concealment was supported by material evidence, the Tribunal and the High Court were justified in holding that no referable question of law arose.

Conclusion: The burden of proving concealment was fully discharged by the revenue, and the refusal to make a reference was correct.

---