Penalty under s 271(1)(c)

Furnishing of inaccurate particulars — Penalty is leviable within the meaning of Explanation 1 to s 271(1)(c) since the annual rental value of Rs 1 lakh, disclosed by the assessee in its return on the basis of the lease agreement, was suppressed, having regard to the fact that the assessee also received Rs 67 crores as an interest-free deposit from the lessee, without which the annual rental value would be much higher. The further explanation of the assessee was also not bona fide, as held by DelHC in PSB Industries India Pvt Ltd v CIT — In favour of: The revenue; ITA No 792 of 2011.

Decided on: 11 July 2011.