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2012 (10) TMI 860 - AT - Income TaxPenalty u/s 158BFA(2) - CIT(A) deleted the levy - Held that:- The facts are not in dispute that there is a difference of Rs. 18,25,849/- between the undisclosed income returned by the assessee and finally assessed. Thus merely because the part of the addition has been confirmed by the Tribunal and the assessee has not filed appeal before the Hon’ble High Court does not mean that the assessee is liable to penalty u/s 158 BFA(2). As decided in CIT vs. Satyendra Kumar Doshi And Another [2009 (1) TMI 240 - RAJASTHAN HIGH COURT] proviso to section 158BFA(2) enumerates the circumstances wherein no penalty is leviable but from that also it cannot be inferred that the absence of the circumstances enumerated will attract the provision of penalty automatically. Of course, as per the provision of section 273B no penalty shall be imposable on the person or the assessee, as the case may be, on their failure referred to in the said provisions if he proves that there was reasonable cause for the said failure. But then the said provision in no manner leads to the presumption that in respect of the cases other than covered by section 273B for any failure or violation imposition of the penalty is automatic. Each provision of penalty has to be construed independently keeping in view the language employed therein - thus as the assessee’s explanation was not found to be false or untrue and keeping in view that the A.O. while imposing the penalty at minimum i.e. 100% has accepted the reasonable cause though for limited purpose, that on the facts and circumstances of the case, the penalty u/s 158BFA(2) is not leviable - in favour of assessee.
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