THE COMMISSIONER OF INCOME TAX, KERALA vs SMT. P.K. KOCHAMMU AMMA PEROKE

The Supreme Court held that the omission of the income of the spouse and minor child in the return for the assessment year 1964-65 did not constitute concealment under Section 271(1)(c) of the Income Tax Act, 1961, as the prescribed return form prior to 31st March 1972 lacked a column for such disclosures. The Court clarified that 'his income' under Section 271(1)(c) refers to income the assessee is liable to disclose, and since the income of the spouse and minor child was not required to be included in the return, the penalty imposed was unjustified. The appeal by the Revenue was dismissed, affirming the Tribunal's and High Court's decisions to set aside the penalty.