Sec. 4 & 271(1)(c) of the Income-tax Act, 1961 - Income —Being aggrieved of the order of Tribunal, Revenue went on appeal before High Court and raised the question of law that “Whether on the facts and in the circumstances of the case, the Hon'ble Appellate Tribunal was correct in law in holding that additional income declared by the assessee by filing revised return consequent to notices u/s. 143(2) and 142(1) does not attract penalty u/s. 271(1)(c) of Income Tax Act, 1961? Whether the Tribunal is right in law in treating the revised return filed by the assessee as a valid return and holding that the same was filed to avoid confrontation with the Revenue and thereby coming to the conclusion that the additional income declared therein does not form a basis for levy of penalty u/s. 271(1)(c) of the Income Tax Act, whereas, the original return filed by the assessee has no omission so as to treat the revised return as a valid one? Whether on the facts and in the circumstances of the case and in law, the admission made by the assessee in the revised return offering higher amount of income does not attract penalty in view of Explanation 1 to Section 271(1)(c) of the Income Tax Act, 1961? Whether on the facts and in the circumstances of the case, the Tribunal is right in law in confirming the order of the CIT(A) wherein it was held that the disallowance u/s.40(a)(ia) does not attract penalty u/s.271(1)(c) of the IT Act,1961?” High Court while dismissing the revenue’s appeal held that “we have no hesitation in persuading ourselves to hold that the Assessee, in the instant case, has not concealed the income deliberately (particularly in the light of the fact that advances have been shown in the balance sheet filed even along with the original return) and therefore, is not liable for imposition of penalty under Section 271(1)(c). SLP of the revenue also dismissed. - PR. CIT V/s TRISHA KRISHNAN - [2019] 267 TAXMAN 394 (SC)