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2016 (8) TMI 1390 - AT - Income TaxLevy of penalty u/s 271(1)(c) - disallowance of commission - Non response to summons - assessee's authorized representative accepted the disallowance of 25% of the commission so as to buy peace and to avoid long drawn litigation - Held that:- The assessee has furnished confirmation of all the parties to whom the commission was paid. TDS was duly deducted from all the persons. That summon issued u/s 133(6) was duly complied with and six persons confirmed having received the commission. Merely because four persons did not furnish reply to the AO in response to summons, it cannot be said that the claim of the commission by the assessee was not genuine. That merely because the assessee agreed for the addition, it, in no way, saddle the assessee with the penalty u/s 271(1)(c) of the Act. It is not a fit case for levy of penalty u/s 271(1)(c). While doing so, we draw support from the decision of Hon'ble Apex Court in the case of CIT Vs. Reliance Petroproducts Pvt.Ltd. - (2010 (3) TMI 80 - SUPREME COURT) as held merely because the assessee's claim for any deduction is not accepted by the Revenue, penalty u/s 271(1)(c) of the Act is not attracted. - Decided in favour of assessee.
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