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2014 (7) TMI 390 - AT - Income TaxPenalty u/s 271(1)(c) of the Act – Ad hoc Payment of wages on estimation – Held that:- There is no evidence brought on record on behalf of the Revenue to prove that the assessee was indulging in making entries of bogus payments in its wage account - the assessee has submitted that signatures of some of the employees might not be tallied as the same employees might have signed differently in different style in different months, and also that it might be that the other employee might have put the signature on behalf of the employees concerned - the disallowance has been made by the department out of wage expenses by way of estimate only - The disallowance was considered at this second appellate stage by the Tribunal and some part relief out of this disallowance out of wages was allowed to the assessee in the quantum appeal of the assessee - it cannot be said that the assessee has admitted bogus payment claimed under the head “wage expenses” - since it is a case of disallowance made out of wage expenses for the reason that the assessee could not establish the same fully with documentary evidences, it is not a fit case for levy of penalty u/s 271(1)(c) – Decided in favour of Assessee.
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