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2015 (9) TMI 173 - AT - Income TaxPenalty U/s 271(1)(c) - CIT(A) deleted part addition - Held that:- Explanation-1 to Section 271(1)(c) of the Act raises a presumption of concealment when a difference is noticed by the Assessing Officer between the reported and assessed income. The burden is then on the assessee to show otherwise by cogent and reliable evidence. When the initial onus placed by the explanation has been discharged by him, the onus shifted to the department to show that the amount in question constituted income and not otherwise. In case before us, the assessee has no intention to declare its true income. It is further held that satisfaction of the Assessing Officer need not to be recorded in a particular manner. Same view also expressed by the Hon’ble Punjab & Haryana High Court in the case of CIT Vs. Shyamraj Singh (2014 (5) TMI 776 - PUNJAB & HARYANA HIGH COURT ). The satisfaction for initiation of penalty is coupled with the findings of the assessment order would show that satisfaction existed in the course of assessment itself and deemed to constitute satisfaction. The Hon'ble Supreme Court in the case of Union of India Vs. Dharmendra Testile Processors [2008 (9) TMI 52 - SUPREME COURT] has held that willful concealment is not an essential ingredient for attracting civil liability. The assessee intentionally claimed the capital expenditure as revenue expenditure on new project (i.e. cement), which was separate activity of the assessee company from the existing business i.e. production of fertilizers. Therefore, we uphold the order of the ld CIT(A). - Decided against revenue.
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