Penalty under 271(1)(c) was held unsustainable where the...

Penalty under 271(1)(c) was held unsustainable where the assessee filed the tax audit and disclosed financial statements timely, offered the entire income voluntarily after a section 148 notice which was accepted without additions, and discharged tax liability before completion of assessment; these facts supported negligence or inadvertence rather than an intent to conceal, so reasonable cause for non-filing under section 139(1) was established and the deeming fiction in Explanation 3 could not be invoked mechanically. Penalty initiation lacked linkage to any specific concealment or inaccurate particular.