N.A. MALBARI AND BROS. vs COMMISSIONER OF INCOME-TAX, BOMBAY

The Supreme Court held that under Section 28 of the Income Tax Act, 1922, the Income-tax Officer has the jurisdiction to impose multiple penalties for concealment of income, provided they are not for the same concealment. The Court rejected the appellant's argument that the second penalty order was illegal due to the existence of a prior penalty for the same concealment, affirming the High Court's ruling that the second penalty was valid. The Court clarified that the cancellation of the first penalty by the Tribunal did not retroactively validate the second penalty, which was deemed lawful from the outset.