The Settlement Commission imposed penalty u/s 271(1)(c) for accepting higher valuation of property as per section 50C of the Act.  On writ allowing the petition the Court held that merely because addition may be made on the quantum side by invoking S. 50C, it did not itself establish that such estimated consideration had actually passed on to the assessee.  Therefore, no conclusion of concealment may have arisen solely occasioned by that estimation of income by way of capital gains made by the Settlement Commission. In the absence of any independent evidence to establish receipt of extra consideration and in the absence of any finding to reject the explanation furnished by the assessee, both as to ignorance of the sale deed executed by his Power of Attorney and also with respect to the actual consideration received, element of concealment was not established. Accordingly, the levy of penalty under s. 271(1)(c) under the order dt. 27th Oct., 2010 passed by the Settlement Commission, is set aside.  (AY. 2007-08)