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2014 (6) TMI 808 - AT - Income TaxDeletion of penalty u/s 271(1)(c) of the Act - Facts properly not appreciated – Held that:- The addition in the second round of litigation on the basis of absence of correct address of the parties and in the absence of PAN - the CIT(A) has deleted the penalty u/s 271(1)(c) on the ground that there was clear difference of opinion between the two CIT(A)’s - when there were two divergent opinions are possible on an issue, penalty u/s 271(1)(c) could not be levied - CIT(A) has observed that the assessee has offered an explanation regarding sundry creditors which was not found acceptable by the AO - there is no mistake in the order of the CIT(A) while deleting the penalty u/s 271(1)(c) of the Act, as the assessee has disclosed all the material facts before the AO and there were clearly two divergent opinions in separate two rounds of litigation before the CIT(A)s’ and the lease rentals received from the same sundry creditor parties were accepted by the AO – thus, the order of the CIT(A) is upheld – Decided against Revenue.
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