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2015 (10) TMI 2750 - AT - Income TaxPenalty levied u/s 271(1)(c) - addition u/s 68 - Held that:- It is well settled proposition that addition made during the course of assessment proceedings would not automatically give rise to penalty under section 271(1)(c) of the Act. It is pertinent to note that the identity of the creditor and genuineness of the transaction have not been found fault with - the Explanations and documents furnished by the assessee to prove the creditworthiness were only found to be inadequate and not found to be false - Explanation 1 to section 271 (1)(c) of the Act would come to the help of the assessee. Hence, on conspectus of the matter, we are of the view that the addition of cash credits confirmed by the ITAT, in the facts and circumstances of the instant case, would not necessitate levy of penalty under section 271(1)(c) of the Act, as the same, in our view, cannot be considered to be concealment of particulars of income. Thus direct the AO to cancel the penalty levied - Decided in favour of assessee.
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