Penalty for disallowed goodwill depreciation fails absent concealment or inaccurate particulars.

Penalty under Section 271(1)(c) could not be sustained merely because the assessee's claim for depreciation on goodwill was disallowed, since disallowance alone does not establish concealment or furnishing of inaccurate particulars. Repetition of the claim in later years did not make it bogus where no material showed a false claim or suppression of facts. The Tribunal's view that the claim was not bogus was accepted, and penalty was held not leviable.

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Issues: Whether penalty under Section 271(1)(c) of the Income-tax Act, 1961 was leviable where the assessee's claim for depreciation on goodwill was disallowed.

Analysis: The claim for depreciation on goodwill had been rejected in earlier assessment years, but its repetition in the relevant year did not by itself make the claim bogus. Penalty under Section 271(1)(c) could not be sustained merely because the underlying claim was disallowed, in the absence of material showing concealment or furnishing of inaccurate particulars. The Tribunal's view that the claim was not bogus was accepted.

Conclusion: Penalty was not leviable, and the issue was decided in favour of the assessee.

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