If Assessee fails to offer an explanation or offers a false/unsatisfactory explanation then penalty will be leviable for concealment of income

RELEVANT PARAGRAPH 12. We have carefully considered the rival submissions and the facts of the case. The assessee’s appeals are directed against the penalty sustained by the CIT(A) in respect of the repayment of the brokerage charged from the clients. In our opinion, the penalty was rightly levied. This is a case where it appears to us that Explanation 1 to section 271(1)(c) of the Act has been rightly invoked by the Assessing Officer. Under this Explanation an assessee would be deemed to have concealed the particulars of his income if, in respect of facts material to the computation of ...