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2012 (10) TMI 367 - ITAT, DELHIPenalty u/s 271(1)(c) - difference after reconciliation of opening and closing balance of creditor - Held that:- Admittedly, the assessee did not reconcile the accounts of the year under consideration in the light of information received u/s 133(6) in the form of copy of account of the assessee from the two parties vis-a-vis assessee’s books and accordingly, vide his letter dated 7.12.2009 surrendered the two amounts as income of the year under consideration to purchase peace of mind. Subsequently, in response to a showcause notice before levy of penalty, the assessee reiterated that amount of ₹ 1 lac in the a/c of NK Jain & Co/was brought forward while difference in the a/c of GTM Sales Corporation remained irreconcilable. Apparently, the assessee did not improve upon his case in the penalty proceedings - the assessee did not reconcile the difference either at the assessment stage or even in penalty proceedings. Apparently, only when the assessee was cornered, the assessee surrendered the amount, thus it is to be concluded that the surrender was not at all voluntary - A very heavy onus was placed on the assessee to explain the difference between the assessed income and returned income and the assessee in the instant case did not discharge the said onus. - no hesitation in upholding the order of the CIT(A) in confirming the penalty imposed by the AO under s. 271(1)(c) - against assessee.
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