| Case ID |
301c9543-a4a0-49a6-9ac4-b0c5070cccce |
| Body |
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| Case Number |
IT REFERENCE Nos. 39 TO 41 OF 1973 |
| Decision Date |
Jul 03, 1975 |
| Hearing Date |
|
| Decision |
The court held that a penalty can indeed be levied under section 271(1)(c) of the Income-tax Act, 1961 for the non-disclosure of income that is deemed to be income under section 41(1), provided the other conditions outlined in that section are satisfied. The case revolved around the issue of whether a refund from the sales tax department, credited to the personal accounts of partners, constituted 'concealed income'. The Tribunal had previously deleted penalties, reasoning that the deemed income did not equate to concealment. However, the High Court clarified that the definition of income within the Act includes deemed income, thus making it subject to penalty provisions if concealed. |
| Summary |
This case addresses the implications of deemed income under the Income-tax Act, 1961, particularly focusing on penalties for non-disclosure. The Punjab and Haryana High Court examined whether penalties could be imposed for income deemed under section 41(1) when certain conditions are met. The facts involved a sales tax refund credited to the personal accounts of partners of a firm, which was not reported in income tax returns. The court emphasized the importance of understanding the definition of income and the legal fiction surrounding deemed income. The ruling clarifies the applicability of penalties for concealment, reinforcing the notion that deemed income is treated as actual income for tax purposes. Keywords include 'Income Tax Act', 'Deemed Income', 'Penalty for Concealment', and 'Tax Law', which are crucial for SEO optimization. |
| Court |
Punjab and Haryana High Court
|
| Entities Involved |
Not available
|
| Judges |
Man Mohan Singh Gujral,
Rajendra Nath Mittal
|
| Lawyers |
D.N. Awasthy,
B. K. Jhingan,
K.S. Suri,
Lakhinder Singh
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
Behari Lal Pyare Lal
|
| Citations |
1977 SLD 1050,
(1977) 107 ITR 587
|
| Other Citations |
CIT v. Aya Singh Ishar Singh [1973] 92 ITR 182 (Punj.),
CIT v. D.D. Puri [1967] 64 ITR 162 (Punj.)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
271(1)(c),
41(1)
|