Penalty for incorrect deduction claim fails where disclosed facts show a bona fide computation error, not concealment of income.

Penalty under section 271(1)(c) applies only to concealment of income or furnishing of inaccurate particulars, and Explanation 1 deems concealment only where the assessee gives no explanation, a false explanation, or an unsubstantiated explanation without full disclosure of material facts. On the stated facts, the assessee had disclosed the relevant particulars, and the excess deduction claim was treated as a calculation error about the allowable period. Filing a revised return after the prescribed time did not, by itself, establish concealment or inaccurate particulars because the claim arose from disclosed material and a computation adjustment. Penalty was therefore held not leviable.

---

---

Issues: Whether penalty under section 271(1)(c) was leviable on the assessee for claiming deduction beyond the admissible period and for filing a revised return after the stipulated time.

Analysis: Penalty under section 271(1)(c) is attracted only where there is concealment of particulars of income or furnishing of inaccurate particulars of such income. Explanation 1 operates as a rule of evidence and deems concealment where the assessee fails to offer an explanation, offers a false explanation, or fails to substantiate a bona fide explanation with full disclosure of material facts. On the facts, the assessee had disclosed the relevant particulars, and the wrong claim of deduction was found to be a calculation mistake as to the allowable period. The revised return, though filed beyond the prescribed time, did not convert the claim into concealment or inaccurate particulars, because the return was based on disclosed material and the adjustment was one for correct computation of income.

Conclusion: Penalty under section 271(1)(c) was not leviable, and the issue was decided in favour of the assessee.

---