TMI Blog1957 (9) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee is not liable to be penalised under the provisions of section 28(1)(c) of the Indian Income-tax Act? The short facts are that the assessee made a return of income-tax on the 13th of September, 1951, in respect of the assessment year 1951-52, the previous accounting year being the year ending with Diwali 1950. There was an appointment given by the Income-tax Officer on the 25th of January, 1952, to the assessee, and a partner of the assessee firm attended before the Income-tax Officer. The assessee had shops at Warora, Wun, Bhadrawati and Narsinda and it was found that in the wholesale shop at Warora on disclosed sales of ₹ 40,770 the assessee showed a gross loss of ₹ 3,444. The assessee's explanation of this loss di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urn must be treated as cancelled for all purposes and no penalty can be imposed in respect of any concealment in the earlier return. Now, it is perfectly true that every assessee has the right under section 22, sub-section (3), to submit a revised return if he discovers any omission or wrong statement in his original return before the assessment is made. But the omission or wrong statement may be accidental or deliberate. Where it is accidental, no result may ensue by reason of the omission; but where the omission is deliberate, the results of such deliberate omission cannot be got rid of merely by filing a revised return. If the omission is deliberate, then in respect of the original return the provisions of section 28(1)(c) apply, because ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aximum penalty on him having regard to the fact that he himself corrected his own statement. In any event, the question as to whether a penalty can be imposed in respect of a concealment in the original return cannot be determined by considering whether there is any inducement for an assessee to file a revised return. Every assessee is expected to file a correct return, and if he does not do so, it is his duty to correct it the moment he discovers any omission, whether there is an inducement to correct it or not. Then Mr. Pandit has argued that in point of fact the Income-tax Officer invoked the proviso to section 13 and the assessee was taxed under section 13; and the omission that he had made in the first return did not affect his tota ..... X X X X Extracts X X X X X X X X Extracts X X X X
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