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2015 (8) TMI 558 - ANDHRA PRADESH HIGH COURTPenalty under Section 271(1)(c) - unapproved expenditure - appellant filed a revised return showing the additional income after claiming the expenditure - Held that:- It is, no doubt, true that the appellant filed a revised return on 30.11.1995 as a sequel to the survey conducted in his premises. It is not a case where any search was conducted or any definite amount was unearthed in the course of the same. The figures pointed out against the appellant are on the basis of projections based upon the strength in the school and the fee payable by the students. No finding as such was recorded to the effect that the amount of ₹ 9,22,810/- was collected. Obviously with a view to purchase peace and to avoid a delicate situation before the competitors in the field, the appellant filed a revised return showing the income, after deducting the expenditure. That was accepted. Here itself, it needs to be mentioned that though the Department pointed out that even after the revised return was filed, a sum of ₹ 5,30,790/- was not included, ultimately, an order under Section 143(3) of the Act was passed accepting the facts and figures furnished by the appellant. This only indicates that the figures mentioned, on the basis of survey, were not accurate. The levy of penalty cannot be resorted to as a matter of course. An assessee can be made to suffer such far reaching consequences, if only facts of the case support, and it emerges that the assessee had a clear intention to suppress the income. We do not find such elements in the instant case. Penalty deleted - Decided in favour of assessee.
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