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2015 (9) TMI 5 - AT - Income TaxPenalty u/s. 271(1)(c) - gift of ₹ 40,000/- received by the appellant from his father-in-law - reason for making the addition u/s. 68 was that the father in law in his affidavit had stated that he does not have a bank account and his income is below taxable limit - Held that:- On perusing the affidavit of the donor dated 11/12/2009, it is seen that the relationship of the assessee and the donor is not in doubt, his age being 61 years is also not in dispute. In the affidavit, the donor has stated that he has made gift out of past saving of carting business. Before us, Revenue has not brought any material on record to demonstrate that the donor could not have earned and saved the amount which he has gifted to his son in law. Further it is a well settled law that penalty proceedings are entirely distinct from assessment proceedings and however relevant and good, the findings in assessment proceedings may not be conclusive so far as penalty proceedings are concerned. It is well settled that the parameters of judging the justification for addition made in the assessment proceedings is different from the penalty imposed on account of concealment of income or filing of inaccurate particulars of income and that certain disallowance/additions could legally be made in the assessment proceedings on the preponderance of probabilities but no penalty could be imposed u/s.271(1)(c) of the Act on preponderance of probability and the Revenue has to prove that the claim of the assessee was not genuine or was inflated its tax liability. Further merely because additions have confirmed in appear or no appeal has been filed by assessee against additions made, it cannot be the sole ground for coming to the conclusion that assessee has concealed any income. - Decided in favour of assessee.
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