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TMI Blog1987 (11) TMI 37X X X X Extracts X X X X X X X X Extracts X X X X ..... answering the aforesaid question are that during the assessment year 1969-70, it was discovered that the assessee had concealed the particulars of capital gains received by it in the sum of Rs. 9,000, consequent upon the sale of certain immovable properties. On its basis, proceeding's for imposition of penalty under section 27l(1)(c) of the Act were initiated against the assessee. Clause (iii) of section 271(1) of the Act as it stood at the Relevant time contemplated imposition of penalty " in the cases referred to in clause (c), in addition to any tax payable by him a sum which shall not be less than but which shall not exceed twice the amount of the income in respect of which the particulars have been concealed or inaccurate particulars h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowing permissible deductions. On this basis, it has been urged that when clause (iii) of section 271(1) of the Act as it stood at the relevant time contemplated that the amount of penalty leviable in cases referred to under clause (c) thereof shall not be less than, but shall not exceed twice, " the amount of income " it is this amount of income, namely, Rs. 2,200, which has to be taken into consideration and not the amount of Rs. 9,000 which constituted the capital gain. For the Department, on the other hand, it was urged by Shri B. K. Rawat relying on the definition of the term " income " contained in section 2(24)(vi) of the Act that since " income " includes " capital gains chargeable under section 45, it is the entire sum of Rs. 9,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one and a half times the amount of the tax, if any, which would have been avoided if the income as returned by such person had been accepted as the correct income." This clause (iii) was substituted by the Finance Act, 1968, with effect from April 1, 1968, and continued to be operative till March 31, 1976. The clause so substituted and which was applicable during the relevant assessment year has already been quoted above. Thereafter, the Taxation Laws (Amendment) Act, 1975, came into force with effect from April 1, 1976, whereby the present clause (iii) was substituted along with the proviso whereunder the amount of tax sought to be evaded is to constitute the basis for quantifying the amount of penalty. There seems to be no doubt that fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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