Penalty for concealment under section 271(1)(c) fails where the revenue cannot prove inaccurate particulars or concealment.

Penalty under section 271(1)(c) was deleted because the record did not establish concealment of income or furnishing of inaccurate particulars. The penalty was initiated from assessment additions, but the order failed to show a clear factual basis for invoking the provision, including in relation to loan and interest-related adjustments. In the absence of demonstrated concealment or inaccurate particulars, the statutory conditions for penalty were not satisfied, and the assessee succeeded.

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Issues: Whether penalty levied for alleged concealment of income and furnishing of inaccurate particulars under section 271(1)(c) was sustainable.

Analysis: The penalty was initiated with reference to additions made in assessment, but the order did not establish that the assessee had furnished inaccurate particulars of income. The material on record did not show a clear basis for invoking the penalty provision in relation to the claimed loan and interest-related additions. In the absence of a demonstrated case of concealment or inaccurate particulars, the statutory requirements for penalty were not met.

Conclusion: The penalty was not sustainable and was deleted, in favour of the assessee.

Final Conclusion: The appeal succeeded because the penalty under section 271(1)(c) could not be maintained on the facts recorded.

Ratio Decidendi: Penalty under section 271(1)(c) cannot be sustained unless the revenue establishes concealment of income or furnishing of inaccurate particulars of income on the basis of clear findings.

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