You claim a deduction in the return and if the same is not allowed by Income Tax Officer, by default he proceeds to initiate proceedings for concealment of income. However, as recently ruled by High Court of Delhi in the case of Commissioner of Income-tax, Delhi-V vs Regency Express Builders (P.) Ltd, in cases where two views on an issue are possible, no proceedings of concealment need be initiated.

Well enough; it should provide relief to taxpayers, who need not be afraid of claiming deduction where in their honest view, it is admissible. After all penalty for concealment of information is ofr concealing it and not “daring to differ” with assessing officer.

In the given case, on question whether rental income received by Assessee was to be assessed under head Income from house property or under Business income, Commissioner (Appeals) held that two views were possible and since there was no clear and definite inference that could be drawn one way or other, Assessee could not be said to have concealed its income or furnished inaccurate particulars, and that evidence led by Assessee could not be said to be mala fide or false.

On appeal to Tribunal, it too concurred with said finding. High Court, on an appeal too ruled that since in assessment order there was nothing to suggest that Assessing Officer was satisfied that Assessee had in any way either concealed particulars of its income or had furnished inaccurate particulars  or had deliberately failed to comply with any notice or direction issued by Assessing Officer, Tribunal was justified.