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2005 (2) TMI 475 - ITAT JODHPURPenalty levied u/s 271(1)(c) - concealment of income or filing of inaccurate particulars of income - HELD THAT:- A careful perusal of the impugned orders clarify that although the assessee has surrendered these amounts during the course of survey, but the same were not reflected in the ensuing returns of income. The explanations tendered were not accepted by the learned AO. So, non-acceptance of the explanation of the assessee, and mere non-filing of appeal against the impugned additions, do not ipso facto lead to the finding that the assessee had concealed the income. There may be hundred and one reasons for such action of surrender of the assessee. Something more is required under the penalty proceeding to nail the assessee for concealment of income or of filing of inaccurate particulars of income. This aspect is missing from the penalty order. The parameters for penal proceedings are entirely different from making addition in quantum of income declared. When the additions are made on estimation, no penalty can be levied. When explanation of the assessee is not found to be plausible and hence rejected, this is again not a just reason to levy penalty u/s 271(1)(c) of the Act. Consequently, penalty u/s 271(1)(c) is not leviable in this case. I draw support from the abovementioned decisions. In the result, the appeal is allowed and the penalty is set aside.
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