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2014 (8) TMI 275 - AT - Income TaxPenalty u/s 271(1)(c) - Transactions relating to cash loan and purchase of land not accounted - Held that:- Penalty u/s 271(1)(c) should not be levied if there is no difference between the returned income and assessed income - there should not be any difference of opinion in respect of this proposition - The income surrendered during the course of survey has been duly offered in the return of income filed by the assessee - the assessee has accounted for the Cash loan and land value in the books of account by making corresponding credit to the Capital Account, which fact proves that both the items cannot be said to have been omitted to be accounted due to incomplete nature of books of accounts - Relying upon CIT Vs. SAS Pharmaceuticals [2011 (4) TMI 888 - Delhi High Court] - The entry passed by the assessee clearly shows that the assessee has used its unaccounted money only to give cash loans and to purchase the land. The penalty cannot be imposed on surmises, conjectures and possibilities - Section 271(1)(c) of the Act has to be construed strictly - unless it is found that there is actually a concealment or non-disclosure of particulars of income, penalty cannot be imposed - If the assessee has made a complete disclosure in the income tax return and offered the surrendered amount for the purposes of tax, there is no concealment or non-disclosure of particulars of income - the provisions of sec. 271(1)(c) should be interpreted strictly - the assessee cannot be imposed penalty u/s 271(1)(c), since it has already disclosed the surrendered amount as its income in the return of income – the order of the CIT(A) – Decided against Revenue.
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