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2014 (7) TMI 340 - AT - Income TaxPenalty u/s 271(1)(c) of the Act – No satisfactory explanation about foreign loss - Wrong claim of expenses incurred on vessels in Tonnage scheme – Held that:- Assessee had claimed forex loss on Tonnage Vessel under the Non-Tonnage Income - Provisions of the Act are very clear about the loss that could be claimed or not claimed under the Tonnage income/non Tonnage income - it was not voluntary compliance of the provisions of the Act - after receiving notices u/s 142/143 if the assessee admits some income it cannot be taken as voluntary disclosure - penalty under the Act is of not of criminal nature - AO and FAA have given a clear finding that the assessee not offered any satisfactory explanation about the forex loss claim. The decision in MAK Data P. Ltd. Versus Commissioner of Income Tax-II [2013 (11) TMI 14 - SUPREME COURT] followed - It is the statutory duty of the assessee to record all its transactions in the books of account, to explain the source of payments made by it and to declare its true income in the return of income filed by it from year to year - The AO had recorded a categorical finding that he was satisfied that the assessee had concealed the true particulars of income and was liable for penalty proceedings u/s 271 of the Act – Decided against Assessee.
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