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2013 (6) TMI 356 - AT - Income TaxPenalty u/.s. 271(1)(b) - CIT(A) deleted the penalty - Held that:- CIT(A) has taken into consideration the fact that the AO has never refuted the plea of the assessee that the appellant had filed first return on a provisional account and it was beyond the control of the corporation to influence the CAG to complete the audit before the due date of filing the return. Reopening had been done only for a small issue of depreciation, which was taken from the Form 3CD filed by the assessee on the basis of the original provisional return. Admittedly, in the return in response to the notice u/s. 148 much higher income was disclosed which is on the basis of CAG report, which was not even in the knowledge of the AO. Further as for both the assessment years the assessment has been passed u/s. 143(3), thus once, an assessment order is passed u/s. 143(3) that too accepting the returned income, it is presumed that the AO has condoned the action of the delay in furnishing of the returns in response to notice u/s. 148 - cancellation of penalty confirmed. In favour of assessee. Penalty u/s 271(1)(c) - CIT(A) deleted the penalty - Held that:- CIT(A) in his order also recognized the fact that the assessee has after completion of the statutory audit by the CAG had truthfully come forward and had filed the details of the true income and even before filing of the return the corresponding taxes have been paid. Perusal of the assessment order clearly shows that the income returned by the assessee in its return in response to the notice u/s. 148 has also been accepted by the AO without any tinkering thereto. Thus it cannot be said that the assessee has concealed any particulars of its income or has furnished any inaccurate particulars of income. Cancellation of penalty confirmed. In favour of assessee.
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