Penalty for concealment not sustained where Tribunal found no concealment on evidence and no substantial question of law arose.

Penalty under section 271(1)(c) of the Income-tax Act was held unsustainable because the Tribunal found, on the evidence, that there was no concealment. That finding was treated as a factual conclusion based on appreciation of the record, and no perversity or legal error was shown to justify interference. On that basis, the penalty issue was decided against the Revenue and in favour of the assessee, and no substantial question of law was found to arise from the Tribunal's decision.

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Issues: Whether penalty under section 271(1)(c) of the Income-tax Act, 1961 was exigible on the ground that the assessee failed to offer the income under the correct head of income, and whether any substantial question of law arose from the Tribunal's finding of no concealment.

Analysis: The Tribunal's conclusion that there was no concealment was founded on the factual material on record and on its appreciation of the evidence. The finding was treated as one of fact, and no perversity or legal error was shown to justify interference.

Conclusion: The penalty issue was answered against the Revenue and in favour of the assessee. No substantial question of law arose.

Ratio Decidendi: A penalty under section 271(1)(c) cannot be sustained where the final fact-finding authority records, on the material before it, that there was no concealment; such a factual conclusion does not give rise to a substantial question of law absent perversity.

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