Penalty under section 271(1)(c) fails where full material disclosure is made and concealment is not proved.

Penalty under section 271(1)(c) was not sustainable where the assessee had furnished all material facts relevant to computation of income and the Revenue failed to establish concealment or furnishing of inaccurate particulars. The omission of a deemed capital gain in the return did not, on the appellate findings, amount to a penalty-worthy default. The Tribunal was therefore justified in upholding deletion of the penalty, and the question of law was answered against the Revenue.

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Issues: Whether penalty under section 271(1)(c) of the Income-tax Act, 1961 was exigible on the facts found by the appellate authorities, and whether the Tribunal was justified in affirming deletion of the penalty.

Analysis: The assessee had furnished the relevant factual particulars for computation of total income, and the dispute related to the omission of a deemed capital gain in the return. The appellate authority found no deficiency in disclosure of material facts. The Tribunal, relying on the settled position that penalty under section 271(1)(c) can be imposed only when the case falls within the recognised contingencies attracting the provision, held that the Revenue had not established concealment or furnishing of inaccurate particulars.

Conclusion: Penalty under section 271(1)(c) was not attracted, and the Tribunal rightly upheld deletion of the penalty. The question of law was answered against the Revenue.

Final Conclusion: The Revenue's challenge to deletion of penalty failed, and the appellate order was sustained.

Ratio Decidendi: Penalty under section 271(1)(c) is not sustainable where all material facts relevant to computation of income were furnished and the Revenue fails to establish concealment or furnishing of inaccurate particulars.

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