https://www.taxtmi.com/caselaws?id=69747 Penalty under section 271(1)(c) was held unsustainable where the assessee's understatement of closing stock arose from an inadvertent double deduction of excise duty in valuation. The quantity of stock was not in dispute; only the valuation method was questioned. As there was no material showing deliberate undervaluation or conscious concealment, the mistake was treated as bona fide and computational in nature. The fact that the error was detected when particulars were called for did not convert it into concealment, and the possibility of higher tax in the subsequent year also supported the bona fides of the explanation. The penalty was cancelled. en-us Mon, 21 Apr 1980 00:00:00 +0530 Mon, 11 Apr 2011 18:30:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=69747 Penalty under section 271(1)(c) was held unsustainable where the assessee's understatement of closing stock arose from an inadvertent double deduction of excise duty in valuation. The quantity of stock was not in dispute; only the valuation method was questioned. As there was no material showing deliberate undervaluation or conscious concealment, the mistake was treated as bona fide and computational in nature. The fact that the error was detected when particulars were called for did not convert it into concealment, and the possibility of higher tax in the subsequent year also supported the bona fides of the explanation. The penalty was cancelled. Case-Laws Income Tax Mon, 21 Apr 1980 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=69747