Meaning of “Conceal/concealment”

Case Name : P.C. Joseph & Bros. Vs. CIT

Citation : [2000] 108 taxman 253/243 itr 818 (ker.)

Court : Kerala high court

Section : 271

Meaning : The word ‘concealed’ is derived from the latin expression ‘concelare’ which implies contcelare meaning ‘to hide’. In webster’s new international dictionary its meaning is equated ‘to hide or withdraw from observation; to cover or keep from sight; to prevent the discovery of; to withhold knowledge of’.

Case Name : India Cine Agencies Vs. Dy. CIT

Citation : [2005] 275 itr 430 (mad.)

Court : Madras high court

Section : 271

Meaning : The word ‘conceal as defined in the concise oxford dictionary means—”not allowed to be seen; hide; keep secret; prevent from doing known. Concealment implies the existence of a deliberate intent to prevent relevant facts from becoming known.

Case Name : ITO Vs. R.B.G.M. Modi & ors. (P.) Ltd. 

Citation : [1988] 31 Ttj (delhi – trib.) 550

Court : Itat-delhi

Section : 271

Meaning : The expressions’conceal’ has been judicially noticed in serveral cases by the high courts and the supreme court. In its plain meaning, the word ‘conceal’ means to hide, to keep secret. The phrase ‘concealed the particulars of his income’ would, therefore, involve a knowledge on the part of the assessee of income which, though real, is not shown.

Case Name : Ram Saran Gupta Vs. Asstt. CIT

Citation : [1997] 58 ttj (jp. – Trib.) 599

Court : Itat-jamshedpur

Section : 271

Meaning : The word ‘conceal’ is derived from the latin word ‘concelare’ which implies ‘con+celare = to hide’. Webster’s new international dictionary equates its meaning ‘to hide or withdraw from observation; to cover or keep from sight; to prevent the discrepancy of; to withhold knowledge’. The offence of concealment is thus a direct attempt to hide an item of income or a portion thereof from the knowledge of the income-tax authorities. It is implicit in the word ‘concealed’ that there has been a deliberate act on the part of the assessee.

Case Name : Yeshwant B. Chigteri Vs. Asstt. Cit 

Citation : [2000] 75 itd 377 (pune – trib.)

Court : Itat-pune

Section : 271

Meaning :The word ‘concealment’ or ‘conceal’ have not been defined in the income-tax act, 1961. The words ‘conceal’ and ‘concealment’, according to their dictionary meaning, can be used by the legislature in the widest possible sense. It may include the act of commission as well as the act of omission. But it is a well settled legal position that words in a given statute are to be construed in the context in which they are used. The word ‘concealment’ is qualified by the words ‘of particulars of income’. So one can be said to have concealed the particulars of income if he is under an obligation to disclose the same. The reason is obvious. Penal provisions are to be construed very strictly. No person can be penalised unless he is found guilty on account of his failure to perform his statutory obligation.

Case Name : Sanjay D. Gupta Vs. ACIT

Citation : [2004] 90 itd 776 (mum. – Trib.)

Court : Itat-mumbai

Section : 271

Meaning : Notwithstanding the difference in the expressions ‘has concealed the particulars of income’ and ‘has furnished inaccurate particulars of income’, it is well-established that they lead to the same effect, namely, keeping off a portion of the income from the return. The word ‘concealment’ inherently carries with it the element of mens rea.

Case Name : Mohd. Ibrahim Azimulla Vs. CIT

Citation : [1981] 131 itr 680 (all.)

Court : Allahabad high court

Section : 271

Meaning : The dictionary meaning of ‘concealment’ is to hide, to keep secret. The explanation does not alter or extend this meaning. It only assumes it to exist if the assessee fails to prove that disclosure was not due to fraud or wilful conduct. Between fraud and innocence, carefulness and gross or wilful conduct, there may be numerous stages. One may not be innocent, yet he may not be a fraud. An action may not be careful but for that reason only it cannot be considered gross or wilful. The assessee may lead evidence in penalty proceedings or may rely on circumstances on records to show that the disclosure was not due to fraud or wilful conduct.

Case Name : T. Ashok pai Vs. CIT

Citation : [2007] 161 taxman 340/292 itr 11 (sc)

Court : Supreme court

Section : 271

Meaning : The expression ‘conceal’ signifies a deliberate act of omission on the part of the assessee. Such deliberate act must be either for the purpose of concealment of income or furnishing of inaccurate particulars. Concealment refers to deliberate act on the part of the assessee. A mere omission or negligence would not constitute a deliberate act of suppressio veri or suggestio falsi.