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2013 (6) TMI 595 - ITAT HYDERABADPenalty u/s 271(1)(c) - unexplained investment in stock - Held that:- AO has not considered the issue independently in the proceedings u/s 271(1)(c). Finding recorded by the AO while imposing penalty u/s 271(1)(c) would reveal that there is no conclusive finding at all by the AO that the assessee has either concealed his income or has furnished inaccurate particulars of his income As can be gathered from the discussions made by the CIT (A) in his order while deleting the penalty, the assessee did prove the fact that he had entered into the transactions with M/s Kalpataru Jewellers and in course of assessment proceedings, the AO also had examined the books of accounts, bills and vouchers of M/s Kalpataru Jewellers wherein the transaction under those right bills were found to be duly recorded. It is another fact that the purchases made under Bill Nos. 74 to 77 were not accepted on the ground of human probabilities but that itself would not lead to the conclusion that the assessee has concealed his income when it is not disputed that when assessee's business transaction with M/s Kalpataru Jewellers is not disputed and it is also fact that all the transactions in the said bills were recorded in the books of accounts of M/s Kalpataru Jewellers. As held in case of Hindustan Steels (1969 (8) TMI 31 - SUPREME Court) an order imposing penalty for failure to carry out statutory obligation is the result of quasi criminal proceedings and penalty will not ordinarily be imposed unless the party obliged under the Act has either acted deliberately in defiance of law or was guilty of conduct contumacious or acted in conscious disregard of its obligation. Penalty deleted. In favour of assessee.
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