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2018 (3) TMI 1739 - AT - Income TaxPenalty u/s 271(1)(c) - assessee had carried out activities of “advancement of other general public utility” provided under section 2(15) - According to the AO, it was not charitable activity and the assessee is not entitled for exemption under section 11(1)(a) - CIT-A deleted the penalty - HELD THAT:- Sub-clause (iii) of section 271(1)(c) provides mechanism for quantification of penalty. It contemplates that the assessee would be directed to pay a sum in addition to taxes, if any, payable him, which shall not be less than, but which shall not exceed three times the amount of tax sought to be evaded by reason of concealment of income and furnishing of inaccurate particulars of income. The quantification of the penalty is depended upon the addition made to the income of the assessee. Since basis for visiting the assessee with penalty has been extinguished by the decision of the Hon’ble Gujarat High Court in the assessee’s case [2017 (5) TMI 1468 - GUJARAT HIGH COURT] wherein it has held that assessee is entitled for benefits under sections 11 and 12 of the Act, the impugned penalty has no limb to stand, accordingly we are of the view that the ld.CIT(A) has rightly deleted the penalty and there is no merit in this appeal of Revenue.
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