Accrued capital gains on completed sales remain taxable despite later reconveyance intent; concealment penalty fails without real suppression.

Completed sale transactions gave rise to taxable capital gains on accrual, and later events or an asserted intention to reconvey the property did not negate taxability once the transfers were complete. Actual receipt of consideration was not required, and continued possession with the assessee was irrelevant; the capital gains were therefore upheld. Concealment penalty was not sustainable where the capital gains were disclosed in the reassessment return and there was no real suppression of income or furnishing of inaccurate particulars; the penalty was cancelled.

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Issues: (i) whether capital gains arising from completed sales were assessable notwithstanding the assessee's plea that later events showed an intention to reconvey the property and that no consideration was actually received; (ii) whether concealment penalty was leviable where no return was filed in the original assessment but the returned capital gains were disclosed in the reassessment proceedings.

Issue (i): whether capital gains arising from completed sales were assessable notwithstanding the assessee's plea that later events showed an intention to reconvey the property and that no consideration was actually received.

Analysis: The transfers were completed sales and there was no case that they were sham or never intended to operate. Subsequent events, including any later intention of the purchasers to reconvey the property, did not affect the taxability of the accrued consideration. Actual receipt of the sale consideration was not necessary, and the fact that possession remained with the assessee was irrelevant.

Conclusion: The capital gains were rightly brought to tax and the assessee's challenge failed.

Issue (ii): whether concealment penalty was leviable where no return was filed in the original assessment but the returned capital gains were disclosed in the reassessment proceedings.

Analysis: The capital gains were shown in the reassessment return, and the assessee's stand was only that he was not liable to be assessed because of certain factual circumstances. On these facts, there was no concealment and no basis for treating the assessee as having furnished inaccurate particulars.

Conclusion: The penalty for concealment was not sustainable and was cancelled.

Final Conclusion: The assessment on capital gains was upheld, but the concealment penalty was deleted, resulting in a mixed outcome.

Ratio Decidendi: Completed sale transactions give rise to taxable capital gains on accrual, and subsequent events or non-receipt of consideration do not negate the taxability once transfer is complete; penalty for concealment requires a real suppression of income or furnishing of inaccurate particulars.

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