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2015 (3) TMI 62 - ITAT DELHIPenalty u/s 271(1)(c) - Non inclusion of income from projects - Held that:- Act of the assessee in not including income from the two projects in its total income is absolutely bona fide backed by proper Agreement with the Ministry of Tourism, Government of India and does not warrant imposition of any penalty u/s 271(1)(c). It is an altogether a different matter that the MOT, after making commitment to a non-resident assessee, could not seek exemption under the relevant provisions of the Act and the assessee completed the litigation by paying the taxes due on such income. Now, if, at all, there is some penalty liability, that should have been discharged by the MOT in terms of its Agreement with the assessee. Since we are only concerned with the imposition of penalty on such income, there can be no case under the present facts for imposing concealment penalty u/s 271(1)(c) on the assessee as there was a bona fide reason for not including such income in the total income. We, therefore, set aside the impugned order and order for the cancellation of penalty for all the years under consideration. - Decided in favour of assessee
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