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2012 (12) TMI 203 - AT - Income TaxPenalty under section 271(1)(c) – Held that:- Department had not discharged its burden of proving concealment and had simply rested its conclusion on the act of voluntary surrender done by the assessee in good faith, and that penalty could not be levied - penalty proceedings and assessment proceedings both are separate proceeding and the explanation given during penalty proceedings is required to be considered by the assessing authority which in the present case has not been done - assessee’s funds are mixed funds i.e. the own fund and interest bearing funds - AO has not specifically pointed out during the assessment proceedings or in the penalty proceedings that the funds which are interest bearing and having used for non-business purposes i.e. the AO has not brought on record the diversion of funds. Therefore on surmises and conjectures, the AO cannot levy the penalty u/s. 271(1)(c) of the Act – In favor of assessee
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