https://www.taxtmi.com/caselaws?id=122332 Penalty under section 271(1)(c) requires concealment of income or furnishing of inaccurate particulars, and Explanation 1 applies only where the assessee's explanation is false, not substantiated, and lacking bona fides despite full disclosure of material facts. In the context of alleged bogus purchases, recorded book entries, an explanation supported by affidavit and surrounding circumstances, and a quantum finding that did not establish the purchases as wholly fictitious, were treated as sufficient to show bona fides. Non-production of the supplier by the assessee, by itself, did not establish concealment where the revenue could have exercised powers to verify third-party attendance. Penalty was therefore cancelled. en-us Fri, 07 May 2010 00:00:00 +0530 Thu, 19 Dec 2024 14:33:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=122332 Penalty under section 271(1)(c) requires concealment of income or furnishing of inaccurate particulars, and Explanation 1 applies only where the assessee's explanation is false, not substantiated, and lacking bona fides despite full disclosure of material facts. In the context of alleged bogus purchases, recorded book entries, an explanation supported by affidavit and surrounding circumstances, and a quantum finding that did not establish the purchases as wholly fictitious, were treated as sufficient to show bona fides. Non-production of the supplier by the assessee, by itself, did not establish concealment where the revenue could have exercised powers to verify third-party attendance. Penalty was therefore cancelled. Case-Laws Income Tax Fri, 07 May 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=122332