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2015 (12) TMI 502 - AT - Income TaxPenalty u/s.271(1)(c) - chargeability of income v/s concealment of income - Held that:- It is clearly proved from the chronological events narrated above that difference of opinion has come out between the assessment stage and the first appellate authority stage wherein the AO had passed an order which was unfavourable for the assessee. On the other hand, the CIT(A) considered the matter and concluded the same in favour of the assessee. Hence, penalty ought not to be levied in a situation where there arises a difference of opinion. Under the circumstances discussed above, the assessee cannot be accused of any concealment of income. The notes to accounts of AY 2007-2008 also go on to clearly state the facts and circumstances of the pending litigations pertaining to AY 2005-2006 related to income tax as well as those pertaining to possession. There is also no dispute to the fact that the assessee has offered its 'real income' for taxation and paid the tax accordingly in the return of income for AY 2007-2008 after the conveyance attained finality and all litigations concerning the subject matter of conveyance were resolved. Thus, where assessee has furnished all particulars of income, imposition of penalty is not automatic in nature. Mere making of a claim which is not sustainable in law does not amount to levying of penalty under section 271(1)(c) of the Act. It is just a matter of difference between assessee and revenue regarding year of chargeability of income and not concealment of income. - Decided in favour of assessee
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