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2014 (1) TMI 1429 - AT - Income TaxPenalty u/s 271(1)(c) of the Act – Held that:- Two situations provided in Explanation 1 appended to section 271(1)(c) makes it clear that that when this deeming fiction comes into play in the above two situations then the related addition or disallowance in computing the total income of the assessee, for the purpose of section 271(1)(c) would be deemed to be representing the income in respect of which inaccurate particulars have been furnished. It is not a case where the assessee had not furnished explanation or had not substantiated the explanation - The assessee had produced even Director of the payee company who had agreed to have received the payment - The Tribunal had reversed the order of CIT(A) on the basis that there was no evidence in the paper book about the complaints received by the assessee and communicated to the payee company - If assessee could produce such evidence, the findings of the Tribunal might have been different - The CIT(A) had given relief by not considering this aspect - it is a case where two appellate authorities has taken different view on the same subject by relying upon different evidences – where there are two views possible penalty u/s 271(1)(c ) cannot be invoked - penalty u/s 271(1)( c) was mot imposable – Decided in favour of Assessee.
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