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2016 (7) TMI 1312 - AT - Income TaxLevy of penalty under section 271(1)(c) - agricultural income - income from other sources - Held that:- Land belongs to assessee’s father-in-law and this agricultural income was earned from agricultural operations from the said land and it cannot be treated as income from other sources. Going by the above facts of the case, we are of the opinion that the assessee had given a bona fide explanation and the Department has not brought any material to show that the explanation was bogus or false. Regarding addition u/s.68 which was confirmed by the Tribunal because of unsatisfactory explanation given by the assessee in support of such credit, but it is not a good case for imposition of penalty, since it relates to lack of tendering explanation to the satisfaction of the ld. Assessing Officer and not disproving the contention of the assessee with regard to the genuineness of the receipts. In the present case, the explanation given by the assessee not disproved by the ld. Assessing Officer, as such there is no conclusive evidence to show that assessee has concealed particulars of income or furnished inaccurate particulars of income. Further regarding agricultural income, the assessee made an honest plea that assessee does not own any agricultural land. It has earned from the agricultural land owned by assessee’s father-in-law. There is no material brought on record to show that it is bogus or false. Being so, we find no reason to levy of penalty u/s.271(1)(c) of the Act, even on this discrepancy. We are inclined to delete the penalty in this case. - Decided in favour of assessee.
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