Penalty concealment requires proof of inaccurate particulars; disclosed income defeated the reference and sustained deletion.

Penalty under Section 271(1)(c) was treated as dependent on proof of concealment of income or furnishing of inaccurate particulars. Where the assessee had disclosed income particulars in Part IV of the return and supported the disclosure with legal opinion, the Tribunal found no concealment on the recorded facts. Applying the settled principle that disclosure negates concealment, it declined to refer the proposed question, holding that no substantial question of law arose and the penalty deletion was sustained.

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Issues: Whether the deletion of penalty levied under Section 271(1)(c) of the Income-tax Act, 1961 called for a reference on a substantial question of law.

Analysis: The assessee had disclosed particulars of income in Part IV of the return along with legal opinion. The Tribunal relied on the principle that, in penalty matters, the Revenue must establish concealment of income or furnishing of inaccurate particulars. On the facts recorded, the Tribunal held that no concealment was shown and, following the settled view that disclosure of particulars negates concealment, declined to refer the proposed question.

Conclusion: The question proposed did not give rise to any substantial question of law, and the penalty deletion was sustained.

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