2005 (1) TMI 43 - HC - Income Tax

Concealment penalty - there was no deliberate intention to evade payment of lawful tax by indulging in concealment of true income - Tribunal seems to be right in upholding the order of the Commissioner of Income-tax (Appeals). When the assessees surrendered their full income there was no question of any concealment on their part - appeal though admitted does not involve any question of law much less a substantial question of law within the meaning of section 260A - It is pursuant to this power we have formed an opinion that the view taken by the Tribunal does not call for any interference as no question of law is involved in the appeal calling any interference.

Summary

Issues:
Appeal against imposition of penalty on the assessee for alleged concealment of income.

Analysis:
The judgment pertains to an appeal filed by the Revenue (Commissioner of Income-tax) challenging an order passed by the Income-tax Appellate Tribunal regarding the imposition of a penalty on the assessee for alleged concealment of income. The Tribunal upheld the order of the Commissioner of Income-tax (Appeals) setting aside the penalty imposed by the Assessing Officer. The High Court observed that when the assessees voluntarily disclosed their full income, there was no deliberate intention to evade tax through concealment. The authorities exercised discretion in not imposing a penalty under section 271(1)(c) of the Income-tax Act as there was no concealment of true income. The High Court found no substantial question of law involved in the appeal under section 260A of the Act and declined to interfere with the concurrent findings of the appellate authorities. The Court highlighted its power to consider additional questions of law at the final hearing but concluded that the Tribunal's decision did not warrant interference as no legal issue necessitated intervention. Consequently, the appeal was dismissed with no costs awarded.