Report No. 12
280. Concealment of income or improper distribution of profits etc.-
(1) If the Income-Tax Officer, or the Appellate Assistant Commissioner, in the course of any proceeding act, is satisfied that any person-
(a) has without reasonable cause failed to furnish the return of his total income which he was required to furnish under section 143(1) [22(1)] or by notice given under section 143(2) [sub-section (2) of section 22] or section 154 [34(1)(a)(b)] or has without reasonable cause failed to furnish it within the time allowed and in thee manner required by section 14B(1)] or by such notice, as thee case may be, or
(b) has without reasonable cause failed to comply with a notice undeer section 146(1) [sub-section (4) of section 22] or section 147 (2) [sub-section (2) of section 23], or
(c) has concealed the particulars of his income or deliberately furnished inaccurate particulars of such income,
(2) When the person liable to penalty is a registered form or an unregistered firm which has been assessed under section 190(b) {23 (5) (b)}, than, notwithstanding anything contained in the other provisions of this Act, the penalty imposable under sub-section (1) shall be a sum not exceeding-
(i) in the case referred to in clause (a) of sub-section (1), one and a half times the amount of the tax payable by a unregistered firm on an income equal to the firm's total income, and
(ii)in the cases referred to in clauses (b) and (c) of sub-section (1), one and a half times the difference between the amount of the tax payable by an unregistered firm on an income equal to the firm's total income and the amount of the tax payable by in unregistered firm on an income equal to the income of the firm as actually returned by it.
[Section 28(1), proviso (d)] (3)(a) No penalty for failure to furnish the return of his total income under section 143(1) {22 (1)} shall be imposed under sub-section (1) on an assessee whose total income does not exceed the maximum amount not chargeable to tax in his case by one thousand one hundred rupees.
[Section 28(1), proviso (a)
(b) Where a person has failed comply with a notice under section 143(2) [sub-section (2) of section 154[section 34(1)(a)(b)] and proves that he has no income liable to tax, the penalty imposable under sub-section (1) shall not exceed twenty-five rupees.
[Section 28(1), proviso (b)]
(C) No penalty shall be imposed under sub-section (1) upon any person assessable under section 169 (1) (i) read with section 154 section 170[42(1), main para, latter half, part regarding liability of agent to be assessed as representing non resident] as the agent of a non-resident for failure to furnish the return under section 143(1) [22(1)]. (4) If the Income-Tax officer or the Appellate Assistant Commissioner, in the course of any proceedings under this Act, is satisfied that the profits of a registered firm have been distributed otherwise than in accordance with the shares of the partners as shown in the instrument of partnership on the basis of which the firm has been registered under this Act, and that any partner has thereby returned has income below its real amount, he may direct that such partner shall in addition ti the tax if any ,payable by him ,pay way of penalty a sum not exceeding one and a half times the amounts of tax which has been avoided, or would have been avoided if the income returned by such partner had been accepted as his correct income; and no refund or other adjustment shall be claimable by any other partner by reason of such direction.
[Section 28(2)]
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