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2014 (8) TMI 1064 - ITAT HYDERABADPenalty u/s 271(1)(c) - period of limitation - Held that:- Time limit stipulated for passing the penalty order is 6 months from the financial year in which the order of the CIT(A) or ITAT is received on the appeal against the assessment proceedings. In this case the order of the ITAT was passed on 25.1.2012 and as such time was available to the AO for passing the penalty order up to 30.9.2012. Hence, we do not find any infirmity in the order of the CIT(A) holding that the order passed u/s. 271(1)(c) is within time u/s. 275. Unaccounted receipts - Held that:- We find that the assessee has offered explanation stating that the total amount received was only ₹ 4.9 crores and not ₹ 5.9 crores and had explained that the amount of ₹ 1 crore had been taken twice by the Assessing Officer while computing the advances given. It is also a fact that the ld. CIT(A) has deleted the addition whereas ITAT restored it. All that happened in the present case was that through a bona fide and inadvertent error the assessee failed to add the provision for gratuity to its total income. This could only be described as a human error which we are all prone to make. The calibre and expertise of the assessee had little or nothing to do with the inadvertent error. That the assessee should have been careful could not be doubted, but the absence of due care, would not mean that the assessee was guilty of either furnishing inaccurate particulars or was attempting to conceal its income. Consequently, given the peculiar facts of this case, the imposition of penalty on the assessee was not justified. - Decided in favour of assessee Unexplained investments - Held that:- As merely because the explanation furnished by the assessee was considered as un-satisfactory or unreasonable it would not ipso facto justify the invocation of clause (a) to levy penalty u/s. 271(1)(c). Hence we find no infirmity in the order of the CIT(A) in holding that penalty is not leviable on the addition of ₹ 1,17,50,000 representing unexplained investment in the hands of the assessee since no concealment is shown to have been established and additions have been made by merely disbelieving the submissions of the assessee. We confirm the order of the CIT(A) and dismiss the appeal of the Revenue. - Decided in favour of assessee
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