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2014 (7) TMI 952 - AT - Income TaxPenalty u/s 271(1)(c) – Held that:- Assessee rightly contended that if an assessee offers an explanation, which is not found to be false, he can save himself - from penalty even if he were not able to substantiate his case as long as the explanation of the assessee is bonafide and as long as he places all the relevant facts material to computation of his total income irrespective of the fact that the same explanation was not accepted for the purpose of assessment –Relying upon ACIT vs. Malhotra Mukesh Satpal [2006 (5) TMI 168 - ITAT PUNE-A] - The explanation of the assessee has nowhere been alleged to be false or short - penalty ought not to be levied on the assessee, even if the additions have been confirmed in quantum proceedings - assessee is found to have made out the case in light of the decisions relied upon - this is not a fit case for imposition of penalty as none of the ingredients incorporated in the relevant provisions have been fulfilled by the AO before arriving at the conclusion to impose the penalty – Decided in favour of Assessee.
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