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2016 (4) TMI 573 - AT - Income TaxPenalty under section 271(1)(c) - Held that:- The addition has been made only on the ground that assessee has not been able to produce the evidence in favour of the payments made by the assessee by way of DDs to the proprietary concern of Mr. Chetan P. Shah i.e., Amit Enterprises. There is nothing on record such as documents found during the course of search in the case of Mr. Chetan P. Shah, to show that the payments made by the assessee were fictitious. The only evidence in possession of the Revenue was that Mr. Chentan P. Shah was in the business of issuing accommodation entries. There is nothing on record also to show that all the entries of Mr. Chetan P. Shah including the entries pertaining to the assessee are fictitious. Further, the assessee has submitted his explanation that the assessee is not in possession of the relevant documents due to passage of time and this has not been found to be false by any of the authorities below. The penalty under section 271(1)(c) of the I.T. Act is leviable where the assessee does not file his return of income or does not file explanation to the show cause notice for levy of penalty or where the explanation is found to be not bonafide. None of these circumstances exist in the case before us. In view of the same, we are of the opinion that the penalty under section 271(1)(c) of the Act, is not leviable in the case of the assessee in the absence of any of the above conditions. - Decided in favour of assessee
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