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2018 (8) TMI 1832 - AT - Income TaxPenalty u/s 271(1)(c) - benefit of section 11 denied - charitable activity or not u/s 2(15)? - HELD THAT:- Factual position of the present case upto the stage of Hon’ble Gujarat High Court [2017 (7) TMI 811 - GUJARAT HIGH COURT] has not been disputed by the Revenue wherein assessee-corporation held to be a charitable institution and entitled for benefits under section 11 and 12, consequently addition on which impugned penalty was imposed stands eliminated. We find that subclause (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 by him, which shall not be less than the addition but which shall not exceed three times the amount of tax sought to be evaded by reason of concealment of income or furnishing of inaccurate particulars of income. In other words, the quantification of the penalty is depended upon the addition made to the income of the assessee. In the instant case addition stands deleted by order of the Hon’ble Gujarat High Court cited supra, therefore ld.CIT(A) has rightly deleted the penalty under section 271(1)(c) - Decided against revenue.
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