Hindu undivided family penalty liability continues despite change in karta for concealment in tax returns.

A Hindu undivided family remains a distinct assessable juristic entity for penalty proceedings under section 28(1)(c) of the Indian Income-tax Act, 1922. Concealment made in a return filed by the previous karta was attributable to the family because the karta acts for the family in filing returns and in tax proceedings. A change in kartaship did not alter the family's legal identity or break continuity of liability, and the family could therefore be proceeded against through the succeeding karta. The contention that proceedings could not continue after the earlier karta's death was rejected.

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Issues: Whether penalty under section 28(1)(c) of the Indian Income-tax Act, 1922 could validly be levied on the Hindu undivided family through the succeeding karta for concealment committed in the return filed by the previous karta.

Analysis: Section 28 applies to an assessable person, and a Hindu undivided family is a distinct taxable juristic entity under sections 2(9) and 3. Change in kartaship does not alter the legal identity of the family. The concealment in the return was found to have been made in the course of proceedings relating to the Hindu undivided family, and the family remained the assessee notwithstanding the death of the karta who filed the return. The court further held that the conscious and deliberate conduct of the karta in filing a false return could be attributed to the family because the karta represents the family in the filing of returns and in tax proceedings.

Conclusion: Penalty under section 28(1)(c) was validly leviable against the Hindu undivided family through the succeeding karta, and the contention that proceedings could not continue after the death of the previous karta was rejected.

Ratio Decidendi: A Hindu undivided family, being a continuing assessable juristic entity, can be proceeded against for penalty under section 28(1)(c) for concealment committed by its karta in the return filed on its behalf, and a change in kartaship does not break the continuity of liability.

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