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2007 (12) TMI 246 - ITAT DELHI-GSurrendered amount represent as Concealed Income? - Penalty levied u/s 271(1)(c) - Onus to prove - creditworthiness and genuineness of the transaction - HELD THAT:- We find no force in the argument of the learned counsel for the assessee that there is a jurisdictional defect in initiating the penalty proceedings as the AO has failed to record any satisfaction in terms of s. 271(1)(c) of the Act in the assessment order inasmuch as the said satisfaction is discernable from the assessment order. The AO while considering the said gift has specifically observed penalty proceedings under s. 271 (1)(c) are being initiated on this point as the onus to prove genuineness of this amount was not discharged by the assessee. Following the ratio laid down in the case of CIT vs. Aggarwal Pipe Co.1999 (7) TMI 57 - DELHI HIGH COURT] squarely applies to the instant case. Therefore, we are of the view that the AO was not justified to impose the penalty under s. 271(1)(c) on the assessee. We, therefore, direct to delete the penalty. In the result, the appeal filed by the assessee is allowed.
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