Concealment penalty not sustainable where depreciation was later claimed through revised returns after an ad hoc tax settlement.

Penalty for concealment of income or furnishing inaccurate particulars was held unsustainable where depreciation was not claimed in the original returns but was later asserted through revised returns after an ad hoc settlement with the tax authorities. The dispute centred on whether the revised claim, made to buy peace, showed concealment or inaccuracy; the Tribunal found on the facts that it did not. That finding was treated as factual rather than raising any substantial question of law, so the penalty could not be sustained and the appeal failed.

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Issues: Whether penalty for concealment of income or furnishing inaccurate particulars was exigible on the facts where depreciation was claimed through revised returns after an ad hoc settlement with the tax authorities.

Analysis: The respondent had not claimed depreciation in the original returns and later asserted the claim through revised returns. The dispute turned on a debatable position regarding allowability of depreciation and the effect of the subsequent settlement, which was arrived at on an ad hoc basis to buy peace. On these facts, the Tribunal found that the assessee could not be said to have concealed income or furnished inaccurate particulars. The finding was treated as one of fact, and no substantial question of law arose.

Conclusion: The penalty was not sustainable and the appeal failed.

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