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2015 (1) TMI 1315 - AT - Income TaxPenalty u/s.271(1)(c) - disallowance made under of Section 94(7) - Held that:- At the time of assessment proceedings, when the details of purchase and sale of shares and units were called for in the course of ordinary hearing, the assessee furnished complete particulars of transactions. During these proceedings, the said mistake was realized and the assessee agreed before the A.O. to disallow the said amount. Since assessee has agreed for disallowance, no show cause notice was issued by the A.O. in this regard. The disallowance was made as per the working submitted by the appellant, which has been accepted by the A.O. Also, against the said disallowance, no appeal is filed by the assessee. It is a case of an inadvertent mistake made by the assessee, and the assessee agreed for disallowance at the time of assessment proceedings. Accordingly, no penalty u/s.271(1)(c) of the Act was warranted. Putting these facts to the proposition of law discussed by coordinate bench in the case of City Group Global Markets India Pvt. Ltd [2011 (12) TMI 658 - ITAT MUMBAI] , we do not find any merit in the penalty so imposed by the AO u/s.271(1)(c) of the Act with respect to the disallowance made under of Section 94(7) of the Act. - Decided n favour of assessee Penalty imposed on account of addition made for legal and professional fee - Held that:- We found that quantum additions so made has been restored back by the CIT(A) to the file of AO with a direction to verify the nature of expenditure which is clear from the order of CIT(A). In view of the above, penalty imposed in respect of these additions which have been set aside, is also restored to the file of AO for deciding afresh after passing the order to give effect to the direction of the CIT(A) with reference to such addition. We direct accordingly.
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