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2012 (10) TMI 719 - AT - Income TaxPenalty u/s 271 (1) (c) - claiming non compete fee as a capital receipt - CIT(A) deleted the levy - Held that:- It is very much clear from the perusal of the provisions laid down u/s 271 (1) (C) that for seeking exemption from penal action regarding an income not declared in the return income, the assessee is required not only to establish that all the facts relating to the same and material to the computation of his total income have been disclosed by him but he has to establish also that the explanation for not showing this income in his return of income was bona fide. As in the present case keeping in mind that the provisions laid down u/s 17 (3) (1) were clear to bring the receipt as taxable and there was no scope of debate regarding its taxability, the bona fide of the explanation of the assessee that he was under a belief that the amount received is a capital receipt not chargeable to tax is not acceptable - thus while not declaring the capital receipt in question as his income in his return of income filed by the assessee, the assessee in the present case had furnished inaccurate particulars of income attracting the penal action provided u/s 271 (1) (C) - against assessee.
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