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2015 (9) TMI 1121 - HC - Income TaxPenalty under Section 271(1)(c) - ITAT deleted penalty - Held that:- Our answer to the question of law raised in this appeal would be that when the Commissioner of Income Tax (Appeals) is satisfied, on the basis of clear and cogent reasonings given in his order, not to levy penalty and when the Tribunal finds such satisfaction on the part of the Commissioner of Income Tax (Appeals) to have been correctly arrived at, the orders do not suffer from any error of law. Therefore, we hold that the Commissioner of Income Tax (Appeals) and the Tribunal were right in ordering deletion of penalty in respect of one item of addition, on the ground that the assessee's explanation was not only bona fide but also substantiated in terms of Explanation (1)(B) of Section 271(1)(iii) of the Act. Hence, the appeal is dismissed. - Decided in favour of assessee.
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