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2014 (12) TMI 17 - HC - Income TaxImposition of penalty u/s 271(1)(c) – bonafide mistake - onus on revenue to prove that the ingredients or preconditions based on which imposition of penalty - assessee surrendered his tenancy rights in consideration of these two flats - Held that:- The revenue has to prove that the ingredients or preconditions based on which imposition of penalty is permissible are present and that is why the penalty is imposed - the limited assistance can be derived from the quantum proceeding in the matters but the foundation or basis on which the assessee claimed the benefit was highly doubtful and questionable – the AO, the CIT(A) and the Tribunal all concurrently found that the explanation which was furnished by the assessee falls miserably short of the required standard in that it is not bonafide at all - If the assessee was a tenant of a building and which was required to be pulled down and there was, therefore, an arrangement with the landlady of providing two flats, then, that was a version of the assessee which was being tested - The Authorities had indicated and with sufficient clarity that the claim of tenancy is not genuine - The documents in relation to that claim are highly suspicious and the contents thereof cannot be believed - so long as the list of authorized tenants in the building does not contain the name of the assessee, then, his entering upon the property has to be probed further - the Tribunal rightly held that this was a fit case for imposition of penalty - The entire explanation with regard to the tenancy rights, if surrendered has not been found to be true - Even in penalty proceedings, the assessee was not able to give a satisfactory explanation that the claim made by him in the return of income was bonafide and that he had declared all the material facts for computation of income - once the imposition of penalty was justified and after application of the relevant tests and there was material to impose such penalty, then, this is not a fit case for entertaining this appeal – no substantial question of law arises for consideration – Decided against assessee.
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