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2014 (3) TMI 1161 - AT - Income TaxPenalty u/s 271(1)(c) - disallowance u/s 14A pertaining to ‘exempt’ income - HELD THAT:- As perused the case file and nothing is forthcoming right from the assessment proceedings or till lower appellate order in penalty case which could suggest that the disallowance u/s 14A had been computed after rejecting the particulars filed by the assessee before the Assessing Officer. Thus, we hold that even the estimated disallowance u/s 14A has been made only on the basis of particulars furnished and not otherwise. In these circumstances, we observe that present is a case of mere estimated addition made in view of the overall circumstances of the case and not based on the particulars of income, which does not warrant imposition of penalty. It is a trite proposition of law that each and every case of disallowance/addition based on the facts and circumstances does not lead to imposition of penalty. Accordingly, we accept assessee’s contentions and delete penalty in question. - Decided in favour of assessee.
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