1970 (7) TMI 18 - HC - Income Tax

Concealment of income in assessment year 1958-59 - whether penalty proceedings under section 271(1)(c) of Income-tax Act, 1961 can be initiated

Summary

The High Court of Madhya Pradesh answered in the affirmative that a penalty under section 271(1)(c) of the Income-tax Act 1961 could be validly imposed on the assessee for concealing income for the assessment year 1958-59. The assessment was completed on March 29, 1963, and the penalty was imposed under section 297(2)(g) of the Income-tax Act 1961. The court rejected the argument that there was no concealment of income, stating it was a question of fact. The decision was based on the precedent set by the Supreme Court in Jain Brothers v. Union of India.