Bombay HC Upholds Section 271(1)(c) Penalty for Deliberate Non-Disclosure

Veena Estate Pvt. Ltd. Vs CIT (Bombay High Court) Bombay High Court examined the appeal filed by Veena Estate Pvt. Ltd. challenging the penalty of ₹33,34,096 imposed under Section 271(1)(c) of the Income Tax Act, 1961. The penalty arose from an alleged concealment of income and inaccurate disclosure of facts in the company’s returns for Assessment Year 1984-85. The case revolved around the revaluation of a plot of land introduced into a partnership as capital, its subsequent withdrawal, and the implications of these transactions for tax liability. The primary question was whether the trans...