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2014 (3) TMI 774 - HC - Income TaxPenalty u/s 271(1)(c) of the Act Applicability of section 43(1) of the Act Held that:- In order to invoke the penalty proceedings under Section 271(1)(c) of the Act, the Revenue should prove that the claim made was not sustainable in law and if the assessee had made a concealment of the particular income Relying upon CIT vs. Reliance Petroproducts Pvt., Ltd. [2010 (3) TMI 80 - SUPREME COURT] - in order to expose the assessee to penalty, the Revenue should show that there was contumacious conduct on the part of the assessee in suppressing the income in the return - in order to expose the assessee to penalty, unless the case is strictly covered by the provision, the penalty provision cannot be invoked - Merely because the assessee had claimed the expenditure, which claim was not accepted or was not acceptable to the Revenue, that by itself would not attract the penalty u/s 271(1)(c) of the Act. The facts clearly disclose that the contention raised by the assessee was not held to be not according to truth or inaccurate particulars furnished or with a view to conceal the actual income - The AO while completing the assessment proceedings, chose to adopt the WDV - by itself would not amount to furnishing inaccurate particulars or with a view to conceal the actual income the order of the Tribunal upheld Decided against Revenue.
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