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2014 (9) TMI 395 - HC - Income TaxPenalty u/s 271(1)(c) – Concealment of income – Held that:- The Government of India had agreed to certain terms and conditions, including the condition relating to payment of taxes - assessee had given an intelligible and cogent explanation in this regard, which was not considered and examined or even noticed by the Tribunal – the explanation was genuine and correct - in the return of income itself, the assessee had taken care and caution to reveal and state full and material facts - the assessee had specifically disclosed that consultancy fee had been treated as exempt under the Act - the subsequent application dated 20th November, 2006 was pursuant to the legal advice, but earlier the receipt was claimed as exempt in view of the terms and conditions set out in the agreement between the appellant-assessee and the ADB - The assessee had taken due care and caution to mention all relevant facts in the return of income without any attempt to conceal or withhold information or details - No reference was made to Section 10(8A) of the Act in the notes - The Tribunal has also recorded that the application filed on 20th November, 2006 has not been disposed of, which also means that the application had not been rejected - it is not a fit case for imposition of penalty u/s 271(1)(c) of the Act and as the appellant-assessee had been able to explain the reason and cause why the income was claimed as exempt and the reason and cause was bona fide and it cannot be a case of the Revenue that all material facts and particulars were not placed before the AO – Decided in favour of assessee.
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