| Case ID |
3cb32231-47cf-4989-93aa-b8c5e7ac348e |
| Body |
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| Case Number |
IT CASE No. 286 OF 1971 |
| Decision Date |
Jul 13, 1973 |
| Hearing Date |
|
| Decision |
The Allahabad High Court upheld the penalty imposed on the assessee-firm for concealing income under section 271(1)(c) of the Income-tax Act, 1961. The court found that the firm had distributed larger profits to its partners than reported in its return and failed to disclose income from interest and property. The Tribunal had sufficient material to conclude that there was a clear charge of concealment. The court dismissed the application challenging the penalty, stating that the findings were supported by relevant material and no question of law arose from the Tribunal's order. |
| Summary |
This case revolves around the imposition of a penalty under section 271(1)(c) of the Income-tax Act, 1961 for concealment of income. The assessee-firm, Sahitya Press, had initially filed a return claiming an income of Rs. 20,000, which was later assessed at Rs. 40,000 by the Income-tax Officer (ITO). Upon further investigation, it was revealed that the firm had distributed profits amounting to Rs. 53,188 among its partners and had not disclosed additional income from interest and property. The court emphasized the importance of transparency in income reporting and the consequences of concealment, reinforcing the legal framework designed to ensure compliance with tax laws. The decision underlines the judiciary's role in upholding tax regulations and the necessity for firms to accurately report their financial activities to avoid penalties. Keywords: income tax, penalty for concealment, Income-tax Act, 1961, financial transparency, Allahabad High Court. |
| Court |
Allahabad High Court
|
| Entities Involved |
Not available
|
| Judges |
R.L. Gulati,
C.S.P. Singh
|
| Lawyers |
P.N. Pachauri,
N.N. Pachauri,
Dr. R.R. Misra
|
| Petitioners |
Sahitya Press
|
| Respondents |
Commissioner of Income tax
|
| Citations |
1976 SLD 267,
(1976) 102 ITR 218
|
| Other Citations |
Not available
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
271(1)(c)
|