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2016 (1) TMI 363 - AT - Income TaxLevy of penalty u/s. 271(1)(c) - Held that:- In the present case, in fact, the contention of the assessee has been such that certainly calls for levy of penalty. First of all, the assessee found a way as to how, it can hide the information to the Department. Even after search action, the assessee has not come with the proof to show that the assessee has not concealed the particulars of income and at this point of time, the assessee has not come clean so as to explain exact quantum of income earned by the assessee with any supporting evidence. In the return of income filed consequent to the search operations, the assessee does not disclose either its true turnover or the true profit percentage. Even at this stage, additions have to be resorted to and the turnover is ultimately confirmed at the stage of first appellate proceedings. The cases, therefore, clearly call for confirmation of penalties. As the contention of the assessee is far from bona fide and there was a clear-cut strategy to not only evade taxes, but also to file inaccurate particulars of income even after search operation. As such, by placing reliance on the judgment of the Supreme Court in the case of B.A.Balasubramaniam & Bros. Co. v. CIT (1998 (1) TMI 7 - SUPREME Court) , we have no hesitation in confirming the penalty impugned u/s 271(1)(c) of IT Act, 1961. - Decided against assessee.
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