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2014 (9) TMI 1150 - AT - Income TaxLevy of penalty u/s 271(1)(c) - Suppression of closing stock - Held that:- Assessee made the AO sweat, to compile the correct quantity of production, sale and closing stock, while all along it gave only workings based on tin numbers. Even if we consider the whole of the opening stock of 11696 tins as consisting of 11.34 Kgs, the closing stock was grossly understated by he assesee. It is not a question of any arithmetical mistake. Assessee agreed to the addition, finding no other way before it. Furnishing insufficient particulars, in a manner calculated to put the revenue at a disadvantage and gain out of it, is nothing but furnishing inaccurate particulars. Giving a break-up of number of tins with different quantities, so as to fit its valuation of closing stock, is nothing but an after thought. In our opinion, it was only an effort to suppress the income which it otherwise had. Assessee had concealed its true income and levy of penalty was justified. However, we have in the quantum appeal filed by the assessee, reduced the addition due to stock valuation to ₹ 70,75,882,36 against ₹ 1,03,23,724/- considered by the AO. Hence, the penalty leviable has to be re-worked. AO is directed to re-work the penalty. But for the quantification aspect against penalty order is sustained. - Decided against assessee.
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