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2011 (7) TMI 665 - AT - Income TaxWhether additions in the assessment or the fact that the assessee did not file appeal can be the basis for levy of penalty - Held that:- Penalty proceedings are different from assessment proceedings as held in the case of Anantharam Veerasinghaiah & Co. v. CIT (1980 - TMI - 5836 - SUPREME Court) and the findings given in the assessment are not conclusive in the penalty proceedings in which it is open to the assessee to prove that there was no concealment of income. Each case has to be evaluated on its own facts and the case of penalty has to be considered under the provisions of Explanation (1) to section 271(1)(c). Where unaccounted donations were based on statements of assessee which were retracted later The retraction of the trustee has not been found reliable by the authorities below as the trustee had clearly stated that unaccounted donations were received and therefore retraction was considered after thought. Further, finally the assessee accepted the addition on account of unaccounted donations by not filing further appeal in the High Court and therefore, the retraction has no relevance. It is also to be noted that the seized documents revealed unaccounted transactions which also support the statement of the trustee that a part of donations received were not accounted. Under these circumstances, the explanation of the assessee that there were no unaccounted donations cannot be considered bona fide.
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