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2014 (7) TMI 258 - ITAT MUMBAIPenalty u/s 271(1)(c) of the Act to be levied with prior approval – Held that:- The order passed u/s 271(1)(c) itself shows contradictory facts and no material was brought on record by Revenue to prove otherwise - the AO has not followed the mandatory procedure, prescribed u/s 274(2) of the Act – the penalty levied u/s 271(1)(c) of the Act is to be set aside - the case of the assessee is that after being diagnosed with cancer her father gave the money to the assessee, which has to be amicably distributed amongst the family members but upon the death of her father it became difficult for her to gather the material to prove the source of his money; to buy peace of mind and to avoid litigation the amount was offered to tax - the assessee always cooperated with the Department - thus, it cannot be treated as a deliberate act or omission on the part of the assessee so as to levy penalty – revenue could not controvert the contents brought out in the affidavit by the legal heirs - Taking an overall picture and particularly on the fact that neither Shri Francis Philip Gonsalves nor Smt. Violet Julius Pereira are alive today, a lenient view of the matter deserves to be taken - she has voluntarily offered to tax to buy peace of mind – thus, the explanation of the assessee is bonafide – Decided in favour of Assessee.
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