Concealment penalty requires clear proof of deliberate suppression; unexplained overwriting alone was insufficient to sustain it.

Penalty for concealment under section 271(1)(c) cannot be sustained merely on the basis of an assessment addition or estimate; the record must reasonably establish conscious concealment or deliberate furnishing of inaccurate particulars. Overwriting in daily collection sheets for two dates, without material linking it to the assessee or showing it was done under his authority, was insufficient to prove deliberate concealment. The section was therefore held not attracted, and the reference was answered in favour of the assessee.

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Issues: Whether penalty under section 271(1)(c) of the Income-tax Act, 1961 was attracted on the facts found, and whether there was material to support a finding of deliberate concealment of income.

Analysis: Penalty for concealment cannot be sustained merely from the assessment order or from an addition made on estimate. Before penalty can be imposed, the circumstances must reasonably establish that the assessee consciously concealed income or deliberately furnished inaccurate particulars. The only circumstance relied upon was overwriting in daily collection sheets for two dates, but there was no material to show that the overwriting was done by the assessee or under his authority. In the absence of such material, a finding of deliberate concealment could not be sustained.

Conclusion: Section 271(1)(c) of the Income-tax Act, 1961 was not attracted. The answer to the reference was in favour of the assessee.

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