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2015 (10) TMI 2476 - AT - Income TaxPenalty u/s 271(1)(c) - cash credit taken from the sister concern - Held that:- Relying upon the decisions of Hon’ble Jurisdictional High Court in case of National Textile vs. CIT (2000 (10) TMI 19 - GUJARAT High Court ) and CIT vs. Jalaram Oil Mills (2001 (6) TMI 15 - GUJARAT High Court) as well as to discussions made it is of the confirmed view that proceedings u/s. 271(1)(c) of the Act are separate proceedings and the observations and findings made during the original assessment proceedings, should not shadow over the proceedings u/s.271(1)(c) of the Act and the A.O. ought to have analyzed the evidences and supporting documents furnished before him during the penalty proceedings u/s.271(1)(c) and examined them in consonance to the provisions of Section 271(1)(c) and only if he is not satisfied with them, then only he should initiate the penalty against the assessee. We, therefore, remit back the issue to the file of A.O. with clear directions to examine on merit the evidences and supporting documents to be submitted by assessee before him for proving the identity, creditworthiness and genuineness of the cash credit taken from its sister concern M/s Poonam Dyeing & Printing Mills Pvt. Ltd. and accordingly, should decide the issue of imposing penalty u/s.271(1)(c) of the Act. - Decided in favour of assessee for statistical purposes.
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