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2011 (10) TMI 651 - ITAT AHMEDABADPenalty u/s. 271(l)(c) - Addition of speculating profit - set off of brought forward losses - addition - Held that:- Invoking the provisions of Section 41(1)he court cannot overlook the facts that only a small percentage of income tax returns are selected for scrutiny and if the assessee makes a claim which is not only incorrect in law but is also without any basis and the explanation furnished by him for making such claim is not found to be bona fide, it would be difficult to say that he would still not be liable to penalty u/s 271(1)(c) of the Income tax Act, 1961. In the present case also, this is not explained by the assessee as to who committed the oversight resulting in failure to add this amount in question as income in the P & L account and in the computation of total income. It is also not explained as to how and under what circumstances, the oversight occurred and why it was not detected by the person who checked the income tax return when it was filed. Under these facts, we decline to interfere in the order of Ld. CIT(A).
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