Penalty for concealment fails where the return was timely filed and only minor disallowances arose on assessment.

Penalty under section 271(1)(c) was not attracted where the assessee filed its return on the due date under section 139(1), the declared income was substantially accepted, and the assessment led only to minor disallowances. The survey occurred before the last date for filing the return, and there was no finding that concealed income was detected after filing or during assessment. On those facts, the return was treated as having disclosed the required income and particulars, so concealment and furnishing of inaccurate particulars were not established; the penalty was cancelled in favour of the assessee.

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Issues: Whether penalty under section 271(1)(c) of the Income-tax Act was leviable where the assessee filed the return on the due date under section 139(1) and the returned income was accepted subject only to minor disallowances.

Analysis: The return was filed on the due date, the income declared therein was substantially accepted, and the assessment resulted only in minor disallowances. The survey took place before the last date for filing the return, and there was no finding that any concealed income was detected after the return was filed or during assessment. On these facts, the filing of the return disclosed the income and particulars required, so the ingredients of concealment or furnishing inaccurate particulars were not established.

Conclusion: The penalty under section 271(1)(c) was not justified and was cancelled, in favour of the assessee.

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