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TMI Blog1957 (10) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... he was directed to show cause why penalty should not be imposed. His explanation is not satisfactory. I, therefore, hold that the assessee had deliberately concealed material particulars of income and manipulated accounts. The above offence comes within the purview of section 41 (1) (c) of the Travancore Income-tax Act. With the prior approval of the Inspecting Assistant Commissioner of Income-tax, Ernakulam, I impose a penalty of ₹ 5,000. This should be paid on or before December 17, 1955." Exhibit P2(b): "Notice under section 28(3) was duly served on the assessee on December 6, 1954, and he was directed to show cause why penalty should not be imposed. No proper explanation is available. I, therefore, hold that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of persons has been discontinued, or where an association of persons is dissolved, every person who was the time of such discontinuance or dissolution a partner of such firm or a member of such association shall, in respect of the income, profits and gains of the firm or association, be jointly and severally liable to assessment under Chapter IV and for the amount of tax payable and all the provisions of Chapter IV shall, so far as may be, apply to any such assessment." 4. As to whethar this section will enable an imposition of a penalty under section 28(1), divergent views have been expressed by the High Courts of Madras and Andhra Pradesh. The Madras High Court decision is Veerappan Chettiar v. Commissioner of Income-tax [1957] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IV. It imposes a penalty for the concealment of income or the improper distribution of profits. The defaults made in furnishing a return of the total income, in complying with a notice under sub-section (4) of section 22 or sub-section (2) of section 23 and in concealing the particulers of the income or deliberately furnishing inadequate particulars of such income are penalised under that section. The defaults enumerated therein relate to the process of proper assessment of taxable income and can properly be said to apply to an assessment under Chapter IV. We cannot say that there is a lacuna in section 44 such as that found in section 25A of the Act." The penalty order in respect of the assessment year 1124 was passed under section 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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