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2014 (2) TMI 1107 - AT - Income TaxDeletion of Penalty u/s 271(1)(c) of the Act – Disallowance of claim of TDR purchase expenses - Held that:- Assessee contended that it has consumed the base land FSI in the projects already completed by it and the balance portion of the project shall be completed on the basis of TDR purchased by it - When the assessee is computing income on the completed projects, it is not known as to how it could claim land cost pertaining to unfinished projects against those completed projects - When it was pointed out to the assessee that its claim is not correct, the assessee has accepted for the addition of a part of land cost proportionate to uncompleted project. The assessee has made an inaccurate or erroneous claim of land cost in its return of income, which has resulted in furnishing of inaccurate particulars of income - Further, the assessee has offered an explanation with regard to this claim, but has failed to substantiate it by bringing any material on record - the assessee has failed to prove that the explanation was bona find one - It is also not the case of the assessee that the claim was in accordance with the accounting practice regularly followed by it or in the trade circles – thus, the assessee has failed to discharge the burden placed upon him under Explanation 1 to sec. 271 of the Act - the assessee shall be deemed to have concealed particulars of income in respect of this addition – the order of CIT(A) set aside in respect of the addition also and the penalty levied by the AO is restored – Decided in favour of Revenue.
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