TMI Blog2001 (6) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax Act, 1961?" The relevant assessment year is 1984-85. The assessee-firm consists of two partners and it is carrying on business in iron and steel sheets. On March 30, 1984, search and seizure was carried out in the business and residential premises of the partners and certain books and loose papers had been seized at the time of search. Apart from the papers and other materials, the relevant part of the seized material is three loose sheets of papers found at the residence of Sri Satyanarayan Gupta, partner of the assessee firm. The residence from where papers were seized is shared by one of the partners, Sri Satyanarayan Gupta, and his son, Sri K. L. Kanoi. Sri Kanoi in his statement had admitted that the profit worked out i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i.e, prior to the amendment in the Explanation to section 271(1)(c) in the year 1975, which has come into force with effect from April 1, 1976. He submits that after that amendment, for the purpose of penalty under section 271(1)(c), once it is found that there is a concealed income by the assessee, that concealed income shall be deemed to be concealed income for the purpose of penalty under section 271(1)(c) of the Act. After that amendment in the Explanation, when there was addition on the admission of one of the partners or the person who keeps the account the addition will be deemed income for the purpose of penalty. The Tribunal has wrongly cancelled the penalty imposed by the Assessing Officer. While sustaining the penalty the Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nto effect from April 1, 1976. In the case of Girdharilal Soni [1989] 179 ITR 111 (Cal) the assessment order involved was 1968-69. Therefore, the Explanation, which was amended in 1975 and that amendment made effective from April 1, 1976, has no application prior to assessment year 1976-77. In the case in hand the assessment year is 1984-85. Therefore, whether there is a case of penalty or not, we have to consider the case in the light of the amendment made in 1975. Mr. Agarwal, learned counsel for the Revenue, further brought to our notice that the amendment made in the Explanation to section 271(1)(c) has been considered by the Kerala High Court in the case of CIT v. A. Sreenivasa Pai [2000] 242 ITR 29. At page 33 after giving the legi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed inaccurate particulars of such income, the penalty under section 271(1)(c) should be imposed. The expression "has concealed" and has furnished "inaccurate particulars" have not been defined anywhere else in the Act but that makes no difference. The word "conceal" is derived from the Latin word "concelare" which implies "to hide". In Webster's New International Dictionary, the word has been equated "to hide or withdraw from observation ; to cover or keep from sight ; to prevent discovery of ; to withhold knowledge of". Once the Assessing Officer is satisfied and found that the assessee has offered "no explanation" or "offered an explanation which is not substantiated by the assessee" that represents the concealed income and in that c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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