Penalty under section 271(1)(c) sustained where additions were confirmed or not further challenged and the assessee failed to rebut merits.

Penalty under section 271(1)(c) remains sustainable where the additions forming its basis are finally confirmed in appeal or are not carried further, and the assessee fails to rebut the findings on merits. The appellate authority had examined the additions item-wise, and the surviving additions supported the concealment penalty. The assessee's plea based on complexity of accounts was rejected because the record showed availability of professional assistance and supporting resources. On these facts, the penalty was rightly sustained.

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Issues: Whether penalty imposed under section 271(1)(c) of the Income-tax Act, 1961 was liable to be deleted in respect of additions that were sustained in appeal and in respect of additions against which no further appeal was filed.

Analysis: The penalty was levied only on the amounts that survived the appellate process or were not challenged further. The assessee's contention regarding complexity of accounts was not accepted, as the records showed availability of professional assistance and supporting resources. The appellate authority had dealt with the additions item-wise and the surviving additions formed the basis of the penalty.

Conclusion: The penalty under section 271(1)(c) was rightly sustained and the appeal failed.

Ratio Decidendi: Penalty for concealment or furnishing inaccurate particulars is sustainable where the additions forming its basis are finally confirmed or not further challenged, and the assessee fails to displace the findings on merits.

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