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2016 (1) TMI 214 - AT - Income TaxPeak credit of additions - whether AO as well as CIT (A) has erred in not appreciating the peak working as submitted by the appellant, without giving any reasons for the same - Held that:- It is obvious that no separate direction is uncalled for as the normal steams of income has to be taxed separately. Further, in our opinion, the income receipts credited to P & L Account or bank account earned out of business are outside the exercise of peak credit analysis and they are separately taxed ie in addition to the peak credits in any year. The income credited to the books of account of the assessee or the bank should be considered exclusive of the peak credit of additions in the assessment. Therefore, we approve the views of the CIT (A). Considering the same, the decision of the CIT (A) vide paras 5 to 5.8 of his order is an order. Thus, the order of the CIT (A) on these issues is fair and reasonable and it does not call for any interference. - Decided against assessee. Penalty u/s 271(1)(c) - Held that:- We agree with the view taken by the CIT (A) while upholding the penalty orders passed by the AO u/s 271(1)(c) of the Act in respect of all the assessment years under consideration. Accordingly, the decision taken by CIT (A) vide paras 5.6 and 5.7 of his order is fair and reasonable. However, as contended by the Ld Counsel for the assessee the penalty levied by the AO @ 200% of the tax to be evaded by reason of concealment of income is on higher side and therefore, considering the factual matrix of the present case, we direct the AO to restrict the penalty to 100% of the tax to be evaded instead of 200% levied by him, which in our considered opinion would meet the ends of justice. - Decided in favour of assessee partly
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