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2017 (5) TMI 1616 - AT - Income TaxAddition u/s 68 - difference in the cash in bank and bank balances - Held that:- Before the confirming the addition, the CIT(A) after considering the written submissions of the assessee, called for a remand report from the AO. In the remand report also, AO categorically stated that the assessee agreed for the addition as he was unable to submit confirmation letters from the creditors. The CIT(A) after considering the remand report as well as considering the facts of the case, confirmed the addition made by the AO. There is no infirmity in the order of the CIT(A) in confirming the addition made by the AO as the assessee himself agreed for the said addition and, therefore, we hereby uphold the order of the CIT(A) - Decided against assessee. Penalty levied u/s 271(1)(c) - voluntary disclosure by assessee - Held that:- When the assessee is not able to furnish the details about the difference in cash in hand and bank balance, to buy peace of mind, he agreed for the addition of ₹ 32,00,000/-. In view of the accepted addition voluntarily, it neither amounts to concealing the income nor furnishing inaccurate particulars of income. When the AO asked the assessee to show the source of bank deposits, the assessee failed to substantiate the same and agreed for the addition. The case of the assessee is not a fit a case to attract the provisions of section 271(1)(c) and levy penalty, hence, we delete the penalty levied by the AO. Accordingly, we allow the grounds raised by the assessee.
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