1993 (10) TMI 22 - HC - Income Tax

Summary

Issues involved: Application u/s 256(2) of the Income-tax Act, 1961 for assessment years 1974-75 to 1978-79.

Summary:
The case involved a firm engaged in the sale of steel tubes, where a search u/s 132(1) revealed undisclosed sales to a related business. The firm offered to be assessed on the undisclosed amount spread over multiple years. Revised returns were filed, admitting concealment. The Income-tax Officer imposed penalties u/s 271(1)(c), upheld by the Tribunal. The firm sought reference of penalty imposition questions.

The Court held that the firm's agreement with the Department to spread the undisclosed amount over years did not absolve it of concealment. Filing revised returns itself admitted concealment, and no agreement can override statutory liability. The Tribunal's factual finding of concealed income being spread over years meant no legal question arose. Therefore, the applications u/s 256(2) were dismissed.