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2014 (1) TMI 938 - AT - Income TaxLevy of Penalty u/s 271(1)(c) of the Act – Assessment of LTCG made by AO – Held that:- The assessment proceedings and penalty proceedings under Section 271(1)(c) of the Act are independent proceedings and that the conclusions arrived at in the assessment proceedings may be good evidence but the same cannot be considered as conclusive for the purpose of evaluating levy of penalty under Section 271(1)(c) of the Act – Relying upon Commissioner of Income-Tax, Madras Versus Khoday Eswarsa And Sons [1971 (9) TMI 19 - SUPREME Court] - an assessee in the course of penalty proceedings is able to demonstrate with a fair degree of certainty that the addition made in the assessment proceedings itself was not warranted then the findings in the assessment order cannot be said to be final so as to fasten the liability of penalty under Section 271(1)(c) of the Act – thus, the preliminarily plea raised by the assessee while assailing the levy of penalty under Section 271(1)(c) of the Act deserves to be admitted and examined on its merits – also, the additional evidence sought to be placed on record by the assessee, which has been detailed above is also relevant - The material was not before the Assessing Officer while evaluating assessee's case for levy of penalty under Section 271(1)(c) of the Act – the matter remitted back to the AO for fresh adjudication – decided in favour of Assessee.
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