Estimated additions do not justify concealment penalty absent proof of inaccurate particulars or income concealment.

Penalty under section 271(1)(c) cannot be sustained where the addition is made only on an estimated basis from lodging receipts. The record did not show concealment of income or furnishing of inaccurate particulars, and the Revenue was required to prove the requisite default before imposing concealment penalty. As the assessment was founded on estimation of receipts for the remaining period, the penalty lacked the necessary factual basis. The assessee's appeal succeeded and the penalty was annulled.

---

---

Issues: Whether penalty under section 271(1)(c) of the Income-tax Act, 1961 could be sustained when the addition was made on an estimated basis from lodging receipts.

Analysis: The assessment and penalty were founded on estimation of receipts for the remaining period by taking five months' receipts as the basis. The record did not establish that the assessee had concealed income or furnished inaccurate particulars. Penalty proceedings under section 271(1)(c) require proof of concealment or inaccuracy, and such penalty cannot rest merely on an estimated addition.

Conclusion: The penalty under section 271(1)(c) was not leviable and its cancellation was warranted.

Final Conclusion: The assessee's appeal succeeded and the penalty imposed by the Assessing Officer stood annulled.

Ratio Decidendi: Penalty for concealment or furnishing inaccurate particulars cannot be imposed solely on the basis of estimated additions unless the revenue establishes the requisite default.

---