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2013 (7) TMI 481 - HC - Income TaxPenalty u/s 271(1)(c) - Whether the ITAT was right in confirming the order of the CIT (Appeals) in deleting the penalty u/s 271(1)(c) in respect of the gross profit addition under the head 'Profits and gains of business' for the A.Y. 2000-01 and 2001-02 - Held that:- The assessee in his assessment has stated that purchases have been made from - In order to test the veracity of the statement made by the assessee and purely relying on the sales of the company, the AO examined the proprietor of the concern - who not only denied the sale of goods but also admitted that he has furnished the bills and not the materials - In order to give an opportunity to the assessee he was allowed to cross-examine but the assessee has not chosen to do the same – Court relied upon the judgement of Kamal Basha v. Deputy CIT (2009 (4) TMI 154 - MADRAS HIGH COURT ) - thus the AO has come to the conclusion that the action of the assessee comes within the meaning of concealment and that the explanation offered is inadequate and accordingly passed the order levying penalty u/s 271(1)(c)- One has to see whether the attitude of the assessee in obtaining only the bills and not the materials/goods would amount to concealment of particulars of income or furnishing of inaccurate particulars in order to attract the provisions of section 271(1)(c) – appeal decided in favour of revenue.
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