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2013 (6) TMI 279 - HC - Income TaxPenalty u/s 271(1)(c) - evidence of the valuer report - AO came to a conclusion that the real value of the machinery was concealed by claiming 100% depreciation and furnished inaccurate particulars - sham transaction - lease - Held that:- the penalty under Section 271(1)(c) is a civil liability, but it does not relieve the assessee from the liability as the object behind the enactment of the said section is to provide for a remedy for loss of revenue. It is no doubt true that in every case where the claim made by the assessee is not accepted by the Assessing Officer for any reason, the asseesee will be levied penalty is not the intend of the Legislature and it would depend upon the facts of every case. But, the aforesaid decision will not come to the aid of the assessee as in the said case no fault was found in the particulars furnished by the assessee, whereas it is not so in the case on hand. Therefore, with respect, the aforesaid cases would not apply to the facts of the present case. The Tribunal, without appreciating the facts of the case in an appropriate manner, had came to a strange conclusion that the departmental presumption is only based upon the statement given by the valuer and such valuation cannot be the basis for levy of penalty. The finding of the authorities based on the evidence of the valuer, which was corroborated by the circumstantial evidence and the background of the case, are not presumptive as has been concluded by the Tribunal. - Levy of penalty confirmed - Decided in favor of assessee.
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