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2012 (6) TMI 571 - AT - Income TaxPenalty levied u/s 271(1)(c)on account of unexplained investment - assessee contested that transactions which were shown by the assessee as purchase and shares on behalf of the clients - Held that:- The transactions recorded by the assessee were in fact the investment of the assessee and not the purchases on behalf of the clients and the addition has been made by the AO on the basis of the evidence found that the client’s ID did not match, hence established that the true nature of transaction has not been recorded by the assessee in the books of account- presenting the incorrect facts and that too regarding the nature of transactions recorded in the books of account calls for levy of penalty - the contention of the assessee that the assessee’s claim is denied due to non production of confirmation of the parties cannot invite penal provisions, is not acceptable - once the addition has been sustained and the assessee’s explanation was not found correct, then the provisions of Explanation 1 to sec. 271(1)(c) is applicable and penalty levied against the assessee is justified - against assessee.
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