Bona fide repair deduction claim defeated concealment penalty where the assessee had a plausible basis for the expense position.

Penalty for concealment was held unsustainable where the assessee claimed repair deduction on a bona fide belief that the expense was allowable and that the lessor bore the liability. Although the deduction could be disallowed on merits, the surrounding material showed a plausible basis for the claim, including actual repair expenditure substantially exceeding the amount claimed. On those facts, the omission was not treated as deliberate concealment or furnishing of inaccurate particulars, and cancellation of penalty was upheld in favour of the assessee.

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Issues: Whether penalty for concealment of income was exigible when the assessee claimed deduction for repairs on a bona fide belief that the expenditure was allowable.

Analysis: The claim for deduction could be disallowed on the merits, but the material showed that the assessee had a plausible basis for believing that the liability for repairs of the relevant portion of the property rested with the lessor. The assessee's actual expenditure on repairs was also substantially higher than the deduction claimed, which supported the genuineness of the belief. In these circumstances, the omission could not be treated as a deliberate concealment or as furnishing of inaccurate particulars so as to justify penalty.

Conclusion: Penalty was not sustainable and the cancellation of penalty was upheld in favour of the assessee.

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