https://www.taxtmi.com/caselaws?id=3409 HC dismissed the department's appeal challenging deletion of penalty under section 271(1)(c) of Income Tax Act. The assessee filed a revised return reducing claimed loss by deleting certain expenditures after receiving questionnaire and adverse appellate orders. Court held that filing revised return withdrawing expenditure claims does not constitute concealment or furnishing inaccurate particulars when all material facts were disclosed. Mere difference of opinion between AO and assessee on allowability of expenditures cannot justify penalty. Court emphasized concealment requires mens rea and deliberate intention to evade tax, which was absent here. Additionally, AO failed to record requisite satisfaction before initiating penalty proceedings, making them invalid. Penalty deletion upheld. en-us Fri, 08 Sep 2006 00:00:00 +0530 Mon, 12 May 2025 10:15:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=3409 HC dismissed the department's appeal challenging deletion of penalty under section 271(1)(c) of Income Tax Act. The assessee filed a revised return reducing claimed loss by deleting certain expenditures after receiving questionnaire and adverse appellate orders. Court held that filing revised return withdrawing expenditure claims does not constitute concealment or furnishing inaccurate particulars when all material facts were disclosed. Mere difference of opinion between AO and assessee on allowability of expenditures cannot justify penalty. Court emphasized concealment requires mens rea and deliberate intention to evade tax, which was absent here. Additionally, AO failed to record requisite satisfaction before initiating penalty proceedings, making them invalid. Penalty deletion upheld. Case-Laws Income Tax Fri, 08 Sep 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=3409