Penalty for concealment denied where retirement receipt taxability was unclear and bona fide belief negated section 271(1)(c) liability.

Penalty under section 271(1)(c) was found unjustified because the Department did not establish concealment. The Tribunal accepted that the taxability of the retirement receipt was unclear, including whether it was business income or capital gains, and that the assessee had a bona fide belief that the amount was not taxable when the original returns were filed. It also noted that the revised returns were filed only after persuasion by the Assessing Officer, and the deletion of penalty was upheld.

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Issues: Whether penalty under section 271(1)(c) of the Income-tax Act, 1961 was exigible on the facts of the case.

Analysis: The Tribunal found that the Department had not established concealment. It noted that the taxability of the amount received on retirement was not clear, including whether it fell under business income or capital gains, and accepted that the assessee had entertained a bona fide belief that the amount was not taxable when the original returns were filed. The revised returns were also filed after persuasion by the Assessing Officer.

Conclusion: Penalty under section 271(1)(c) was not justified and its deletion was upheld.

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