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2013 (8) TMI 870 - AT - Income TaxPenalty u/s 271(1)(c) - advances of dormant contracts received - whether Commissioner of Income-tax (Appeals) is justified in law in deleting the penalty levied under section 271(1)(c) disregarding the fact that, the advances received by the assessee on dormant contracts was shown under the head 'current liabilities' and were only offered to tax in subsequent assessment years 2008-09 and 2009-10 after the objection was raised by the Assessing Officer - Held that:- first appellate authority has rightly deleted the penalty - assessee had offered the advances for taxation in subsequent assessment years before the Assessing Officer made any inquiry about them. The first appellate authority has given a categorical finding about the dates of inquiry initiated by the Assessing Officer and offering of advances for subsequent years and from his order it is clear that the assessee had on its own paid tax on the amounts-in-question. It is not a case where the assessee had concealed the facts of earning of income rather it is a case where the year of taxability of income was in dispute. The Assessing Officer and the assessee had different opinions about the year in which the same should be taxed. In our opinion, in such matters penalty under section 271(1)(c) cannot be levied. - Decided against Revenue.
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