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2014 (7) TMI 1039 - AT - Income TaxLevy of penalty u/s 271(1)(c) – Addition u/s 68 on disallowance of interest expenses and unexplained cash credit – Held that:- Assessment proceedings and penalty proceedings are separate and distinct and the finding in the assessment proceedings cannot be regarded as conclusive for the purposes of the penalty proceedings - assessee had disclosed the material facts namely name of the depositors copy of their PAN card, confirmation of the depositor and their acknowledgement of return of Income - When the assessee has furnished all the material facts relevant thereto, the disallowance of such claim cannot automatically lead to the conclusion that there was concealment of particulars of his income by the assessee or furnishing inaccurate particulars - What is to be seen is whether the said claim made by the assessee was bona fide and whether all the material facts relevant thereto have been furnished and once it is so established, the assessee cannot be held liable for concealment penalty u/s 271(1) (c) of the Act – as all the necessary facts were furnished, simply because the addition has been made it does not call for levy of penalty u/s 271(l)(c) – Decided in favour of Assessee.
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