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2016 (5) TMI 15 - AT - Income TaxPenalty u/s 271(1)(c) - Held that:- It is seen that initially during the assessment proceedings, addition was made by the Assessing Officer because as per him, the brought forward losses were insufficient to cover the business profits for Assessment Year 2008-09. However, with the First Appellate Authority allowing the appeal of the assessee for Assessment Year 2005-06, the business losses to be set off against the income for Assessment Year 2008-09 have again increased so as to reduce the business income for Assessment Year 2008-09 to NIL. In our considered view, the starting point of determining concealment for imposing penalty is the return of income. In the present appeal, the Assessing Officer has not found any discrepancy, inaccuracy or concealment in the return. The Assessing Officer’s view is totally misplaced and de hors any merit as section 271(1)(c) of the Income Tax Act, 1961 empowers the Assessing Officer to impose penalty on the assessee when such assessee has concealed the particulars of his income or has furnished inaccurate particulars. However, in the present appeal, there is nothing on record to hold that the assessee has either concealed the particulars of its income or furnished any inaccurate particulars thereof. We accordingly decide the issue in favour of the assessee and direct the Assessing Officer to delete the penalty. - Decided in favour of assessee
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