TMI Blog2014 (7) TMI 1064X X X X Extracts X X X X X X X X Extracts X X X X ..... eto 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 - all the necessary facts were furnished and the fact that the addition has been substantially reduced in appeal, the addition that was sustained does not call for levy of penalty u/s 271(l)(c) – thus, the penalty levied is set aside – Decided in favour of Assesse. - I.T. A. No. 1058/AHD/2011 - - - Dated:- 30-6-2014 - Shri Anil Chaturvedi, A.M. And Shri Kul Bharat,J.M,JJ. For the Appellant : Ms. Urvashi Shodhan, A.R. For the Respondent : Shri P. L. Kurrel, Sr. A.R. ORDER Per Shri Anil Chaturvedi,A.M. 1. This appeal is filed by the Assessee against the order of CIT(A)-I, Bar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peals) has confirmed the penalty to extent ₹ 3,91,522/-out of total penalty of ₹ 10,50,000/- u/s 271(1)(c) of the Act. 5. Before us, the Ld AR reiterated the submissions made before AO and CIT(A). She further submitted that in the quantum appeal, the Hon'ble Tribunal vide order (ITA No 3841/Ahd/2007 dated 13.7.2010) had restricted the addition to ₹ 10,96,700/-. It was further submitted that the Assessee had submitted all the details and explanations during the course of assessment proceedings and the explanation was not found to be untrue. It was further submitted that the addition made to work in progress is revenue neutral because the addition made to the closing stock becomes the opening stock of subsequent year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iate and fails to prove that such explanation is bona fide and that all the facts relating to the same have been disclosed by him. If the case of any assessee falls in any of these three categories, then according to the deeming provision provided in Expln. 1 to section. 271(l)(c) the amount added or disallowed in computing the total income shall be considered as the income in respect of which particulars have been concealed, for the purposes of clause. (c) of s. 271(1), and the penalty follows. On the other hand, if the assessee is able to offer an explanation, which is not found by the authorities to be false, and assessee has been able to prove that such explanation is bona fide and that all the facts relating to the same have been discl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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