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2014 (3) TMI 762 - HC - Income TaxPenalty u/s 271(2) of the Act – Concealment of refundable empty bottle deposit -Whether the Tribunal is justified in upholding the levy of maximum penalty u/s 271(2) of the Act – Held that:- The Tribunal recorded a finding that the assessee did not disclose the income on account of refundable empty bottle deposit and servicing and packing charges either in the profit and loss account or in the balance sheet besides not claiming exemption in respect thereof in Part-IV of the Return - there was a deliberate and wanton concealment on the part of the assessee, and this finding is not dislodged in any manner by the assessee - the distinguishing aspect which is sought to be made, has no distinction at all - in the absence of dislodging the finding of the Tribunal to the effect that there was a deliberate concealment of the refundable empty bottle deposits by not disclosing the same either in profit and loss account or in the balance sheet, the levy of penalty as provided under Section 271(c) of the Act on the facts of the case, cannot be found fault with – Decided against Assessee. Penalty for unreconciled difference in balance sheet – Held that:- The differences in the balance sheet can be the result of various wrong entries - The AO himself noticed some wrong entries like the understatement of purchases and understatement of sundry creditors and no motive of concealment can be attributed to these wrong entries – thus, there is no justification for the levy of penalty u/s 271(1)(c) of the Act - there is no contra finding given by the Tribunal – Decided in favour of Assessee.
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