Bona fide disclosure of capital gains defeated penalty for concealment, with no suppression or inaccurate particulars found.

Penalty for concealment or furnishing inaccurate particulars was held unsustainable where the assessee disclosed capital gains on the amount actually received and the relevant facts were verifiable from the assessment record. The Revenue's case rested on the view that the entire sale consideration had accrued in the year of agreement, but the material on record did not show suppression of income already disclosed. The assessee's understanding that taxability arose on receipt basis was treated as a bona fide and not wholly unreasonable view, and concealment or inaccurate particulars was not established. Deletion of the penalty under section 271(1)(c) was therefore justified.

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Issues: Whether penalty under section 271(1)(c) of the Income-tax Act, 1961 was leviable for concealment of income or furnishing of inaccurate particulars where the assessee had disclosed capital gains on a proportionate basis and had acted under a bona fide belief regarding taxability.

Analysis: The assessee had shown capital gains in respect of the amount actually received in the return and the relevant facts were verifiable from the assessment record. The penalty was levied on the premise that the entire sale consideration had accrued in the year of agreement, but the surrounding facts showed that the assessee had not suppressed the receipt already disclosed. The view taken by the first appellate authority was supported by the fact that the assessee's understanding of taxability on receipt basis could not be said to be wholly unreasonable, and the material on record did not establish concealment or inaccurate particulars.

Conclusion: The penalty under section 271(1)(c) was not sustainable and its deletion was justified.

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