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2016 (4) TMI 1261 - AT - Income TaxLevy of penalty under section 271(1)(c) - Held that:- The finding of the Assessing Officer in the penalty order are incorrect in the sense that Assessing Officer has recorded his satisfaction in the penalty order that assessee has failed to produce documentary evidence to substantiate its claim because assessee furnished/produced documentary evidence as noted above in support of its claim of sale of shares at ₹ 10/- per share to the share broker and the documentary evidences filed by the assessee have been corroborated by the information provided by the company under section 133(6) of the Act to the Assessing Officer directly. Therefore, it is not a case where the assessee has failed to produce documentary evidence to substantiate its claim. The Assessing Officer levied the penalty because the explanation of the assessee was not acceptable to the Assessing Officer. Therefore, Explanation-I to Section 271(1)(c) would not apply in the case of the assessee because the explanation of the assessee was bonafide and was substantiated through documentary evidence and explanation of the assessee was not found to be bogus or false. Since assessee disclosed complete facts in the return of income therefore, there cannot be filing of inaccurate particulars of income. We are of the view that even if the quantum addition have been confirmed upto the stage of Hon'ble High Court, however, it is not fit case of levy of penalty under section 271(1)(c) - Decided in favour of assessee.
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