1993 (10) TMI 107 - AT - Income Tax

Summary

Issues:
1. Confirmation of penalty under section 271(1)(c) by CIT (Appeals) against the assessee.
2. Failure to disclose share income from two registered firms and remuneration from a company.
3. Initiation of penalty proceedings by the ITO based on undisclosed income.
4. Arguments by the assessee's counsel regarding the justification of penalty imposition.
5. Submission by the Sr. D.R. on deliberate concealment of income by the assessee.
6. Analysis of the facts and submissions by the ITAT.
7. Consideration of judgments and principles related to penalty imposition.
8. Decision on the appeal and partial allowance of the appeal.

The judgment involves the confirmation of a penalty under section 271(1)(c) by the CIT (Appeals) against the assessee for failure to disclose share income from two registered firms and remuneration from a company. The ITO initiated penalty proceedings based on the undisclosed income, including an additional sum for low withdrawals. The CIT (Appeals) upheld the penalty, citing conscious concealment of substantial income by the assessee. The ITAT considered arguments from both sides, with the assessee claiming a bona fide omission and the Sr. D.R. asserting deliberate concealment. The ITAT analyzed the facts, including the timing of the revised return filed by the assessee after detection of the undisclosed income. The ITAT referred to various judgments highlighting the importance of the mental state of the assessee at the time of filing the original return and the implications of a revised return after detection. The ITAT ultimately upheld the penalty for concealment of income but ruled out penalty on the estimated amount for low household expenses. The ITAT also addressed the judgments cited by the assessee's counsel, emphasizing that voluntary filing of a revised return after detection does not absolve the assessee from penalty liability. The appeal was partially allowed by the ITAT.