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2014 (3) TMI 505 - AT - Income TaxPenalty u/s 271AAA of the Act – Failure to furnish accounts of clients - Held that:- Mere failure of assessee to furnish accounts of the clients in which modification was done due to necessity of business and as per norms of exchange of the institution, an act of concealment of income or furnishing of inaccurate particulars of income, particularly, when complete identity of the clients were given with whom business of brokerage was carried on - Thus, inability to file confirmations was because it was not in the control of the assessee cannot constitute a concealment of income. Whatever income was generated in the past has been disclosed in the return of income filed for A.Y. 2008-09 in the form of assets, particularly, when no such income was found for this year - CIT(A) has given specific direction to allow telescopy of the addition - when the A.O. has made addition on account of assets, he is bound to allow the same for A.Y. 2006-07 and 2007-08 - income earned/an asset acquired out of such income cannot be taxed twice – the decision in CIT Vs. Aryamal Balchand [1986 (4) TMI 14 - RAJASTHAN High Court] followed - Penalty proceedings and quantum proceedings are separate and distinct and the parameters which are applicable to the assessment proceedings may not apply to penalty proceedings – thus, no penalty is imposable in the case – thus, the penalty imposed is set aside –Decided in favour of Assessee.
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