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2017 (4) TMI 708 - ITAT MUMBAIPenalty under section 271(1)(c) - Unexplained cash credit - Held that:- Tribunal has confirmed the addition only on the basis that the assessee did not obtain any confirmation letter from this party, however, the assessee placed reliance on repayment of ₹ 93,000/- made on 10-05-1991 to the creditor. Hence, it is a debatable issue whether the assessee has repayment or not. Tribunal in respect to this cash credit, we are of the view that there is a debate about re-payment of ₹ 93,000/- made on 10-05-1991 by the assessee to this creditor Shri Ronak Patel. Hence, in any case penalty for concealment cannot be levied. We delete the penalty and allowed the appeal of the assessee on this issue. The assessee before Tribunal explained that the assessee has furnished copy of account of creditor, copy of receipts issued to the creditor, confirmation letter obtain for the year ended 31-03-1989 and 31-03-1991. It is admitted fact that the confirmation letters contained the GIR No. of the creditor. Now, it was claimed before us that the assessee could not obtain fresh confirmation for the year ending 31-12-1987 due to long passage of time. Even the books of account were available for inspection only in August 2009 as per the direction of the Hon’ble Bombay High Court. We find from the penalty order of the AO that he has no were discussed the element of concealment in respect to this cash credit and hence we have no reason to sustain the same. The penalty levied by AO and confirmed by CIT(A) is deleted. In respect to other items on which penalty was levied by AO and confirmed by CIT(A) in all these three years, the Tribunal has deleted the additions, the penalties levied and confirmed will not sustain. AO is directed to delete the penalties in respect to those items which have already been deleted by the Tribunal in quantum. All the three appeals of the assessee are allowed.
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