Concealment penalty falls when the underlying quantum addition is deleted, leaving no basis for tax evasion finding.

Penalty for concealment under section 271(1)(c) could not survive once the underlying quantum addition relating to section 80IA deduction had been deleted in the assessee's own case. The penalty was founded on the same addition made in assessment, and with that disallowance no longer surviving in appeal, there remained no basis to sustain any finding of concealment or tax sought to be evaded. The concealment penalty was therefore deleted, granting relief to the assessee.

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Issues: Whether penalty under section 271(1)(c) of the Income-tax Act, 1961 could survive after the corresponding quantum addition under section 80IA was deleted in appeal.

Analysis: The penalty was founded on the addition made in the assessment, including the disallowance relating to deduction under section 80IA. The quantum addition had already been deleted by the co-ordinate Bench in the assessee's own case. Once the addition on which the concealment penalty rested no longer survived, there remained no basis for sustaining a finding of concealment or any amount of tax sought to be evaded.

Conclusion: The penalty under section 271(1)(c) could not be sustained and was deleted, resulting in relief to the assessee.

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