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2012 (9) TMI 122 - AT - Income TaxPenalty u/s 271(1)(c) - disentitled for deduction u/s 80HHC - Held that:- AO initiated the penalty proceedings for ‘furnishing of inaccurate particulars’ but finalized the penalty for ‘concealment of income’ - Even though assessee has not contested the issue at the time of assessment, even after giving explanation that the amount was assortment charges/service charges, AO should have examined the nature of amount and should not have disallowed just because the amount was classified as export commission. Just because assessee has not contested the working made by AO it does not automatically lead to penalty under section 271(1)(c). Each and every addition made in the assessment cannot automatically lead to levy of penalty for concealment of income or furnishing inaccurate particulars of income - on the facts of the case there is no case for levy of penalty just because the claim was disallowed in the assessment and assessee has not contested - against assessee.
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