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2023 (10) TMI 777 - ITAT DELHIPenalty levied u/s 271(1)(c) - addition on account of loan received by the assessee which was treated as deemed dividend u/s 2(22)(e) - As alleged appellant has furnished inaccurate particulars of income - HELD THAT:- We find force in the submission of the assessee. In the case of Tristar Intech Pvt. Ltd. [2015 (10) TMI 810 - ITAT DELHI] the Tribunal while dealing with Explanation 1 of Section 271(1)(c) held that penalty can be imposed only for a specific charge. Furnishing inaccurate particulars of income means, when the assessee has not disclosed the particulars correctly or the particulars disclosed by the assessee are found to be incorrect whereas, concealment of particulars of income means, when the assessee has concealed the income and has not shown the income in its return or in its books of accounts. Explanation 1 is a deeming provision and is applicable when an amount is added or disallowed in computation of total income which is deemed to represent the income in respect of which particulars have been concealed. Explanation 1 cannot be applied in a case where the assessee furnishes inaccurate particulars of income. Also observed that by way of deeming provision the Assessing Officer made addition of Rs. 18,42,000/- being the loan taken by the assessee from the company in which he was a substantial shareholder which addition was ultimately reduced to the accumulated profits of the lender company at Rs. 4,73,526/- by the Tribunal vide order in MANOJ MITTAL [2020 (4) TMI 841 - ITAT DELHI] There is no concealment of particulars of income by the assessee so as to attract penalty u/s 271(1)(c) - AO is directed to delete the penalty levied u/s 271(1)(c) - Appeal of assessee allowed.
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