1996 (9) TMI 26 - HC - Income Tax

Summary

Issues:
- Assessment year 1967-68: Whether the Income-tax Appellate Tribunal was right in imposing a penalty under section 271(1)(c) of the Income-tax Act, 1961, for concealment of income related to contract works?
- Assessment year 1966-67: Whether the Income-tax Appellate Tribunal was justified in imposing a penalty under section 271(1)(c) of the Income-tax Act, 1961, for concealment of income related to contract works?

Analysis:
- The case involved assessments for the years 1966-67 and 1967-68, where revised returns were filed after the original filings. The revised income for 1967-68 included business income from contracts and share profit from a construction firm.
- The Income-tax Officer made additions to the reported income based on discrepancies found in the returns, leading to penalties imposed by the Inspecting Assistant Commissioner.
- The Income-tax Appellate Tribunal initially waived the penalty for 1966-67 but upheld it for 1967-68. The matter was brought before the High Court to determine the validity of the penalties.
- The High Court considered whether the voluntary filing of revised returns could exempt the assessee from penalties under section 271(1)(c) of the Income-tax Act for both years.
- The Court affirmed the Tribunal's decision on the penalty for 1967-68, citing concealment of income from contract business. For 1966-67, the Court upheld the penalty based on the revised income figures.
- The Court concluded that the penalties were justified, considering the concealment of income and upheld the Tribunal's decisions in favor of the Revenue against the assessee.
- The judgment was forwarded to the Income-tax Appellate Tribunal, Cochin Bench, as required by law.