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2015 (10) TMI 1078 - AT - Income TaxPenalty under section 271(1)(c) - undisclosed donation receipts - assessee is an educational and charitable trust enjoying registration under section 12AA - Held that:- In the present case, the assessee has explained before the Assessing Officer that the amounts received by it are voluntary donation and certain details are not available. Therefore, the extent of details not available are worked out by the assessee and offered for taxation. We find that by explaining all the reasons, the assessee has discharged burden cast upon it. Thereafter, it is the duty of the Assessing Officer to disprove that the explanation given by the assessee is neither correct nor bonafide. Therefore, the ld. CIT(A) is not correct in upholding the penalty order passed by the Assessing Officer by following the decision of in the case of Mak Data P. Ltd. v. CIT [2013 (11) TMI 14 - SUPREME COURT] without considering the explanation given by the assessee. We find that the assessee has failed to handle the donations received by them in appropriate manner. Therefore, the assessee offered the very same amount for taxation. Under these facts and circumstances of the case, we are of the opinion that the assessee has neither concealed the income nor furnished inaccurate particulars. In the case of CIT v. Balraj Sahani [1979 (2) TMI 61 - BOMBAY High Court ] held that the findings in quantum proceedings are not binding in penalty proceedings and the Tribunal, or consideration of unreliable state of evidence regarding concealment, was justified in deleting penalty. Therefore, the ld. CIT(A) was not justified in confirming the penalty order passed by the Assessing Officer. - Decided in favour of assessee.
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