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2010 (1) TMI 837 - AT - Income TaxPenalty under section 271(1)(c) - long-term capital gain - Assessing Officer held that the payment to workers was not expenditure in connection with transfer - Held that:- levying penalty under section 271(1)(c) signifies a deliberate omission on the part of the assessee. Such deliberate act must be either for the purpose of concealment of income or furnishing of inaccurate particulars, Assessing Officer is required to arrive at a finding that the explanation offered by the assessee, in the event he offers one, was false. He must be found to have failed to prove that such explanation was not only not bona fide but all the facts relating to the same which are material to the income were not disclosed by him. Thus apart from his explanation not being bona fide, it should be found as a fact that he has not disclosed all the facts which were material for the computation of his income, facts of the case do not warrant levy of penalty under section 271(1)(c) of the Act, Departmental appeal is dismissed.
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