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2015 (5) TMI 547 - AT - Income TaxPenalty u/s 271(1)(c) - disallowance u/s 14A - Held that:- The assessee had earned dividend income which is an exempt income and assessee, on its own, disallowed a sum of 1% of dividend income u/s 14A. The Tribunal further held that the AO was not satisfied with the assessee’s quantum of disallowance and he accordingly applied Rule 8D of the Income Tax Rules 1962 and computed the disallowance which was accepted by the assessee to avoid further litigation. The Tribunal also held that the issue may call for addition to the income assessed u/s 143(3) of the Act but in order to invoke the penalty u/s 271(1)(c) of the Act, the AO has to walk a little extra mile to prove that there is failure on the part of the assessee to “conceal the particulars of income” or “furnishing of inaccurate particulars”. We are in agreement with the conclusion of the Coordinate Bench of the Tribunal that mere non-acceptance of assessee’s submissions and without any positive evidence from the AO that the assessee has concealed or has furnished inaccurate particulars of its income, did not ipso facto invite levy of penalty u/s 271(1)(c) of the Act. The present case is squarely covered in favour of the assessee by the decision of ITAT Delhi ‘E’ Bench in the case of ACIT vs M/s Mehrotra Invofin India Pvt. Ltd. (2015 (5) TMI 535 - ITAT DELHI) and hence, sole ground of the revenue being devoid of merits is dismissed. - Decided in favour of assessee.
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