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2016 (8) TMI 1042 - HC - Income TaxPenalty under section 271(1)(c) - Held that:- The assessee in one of the appeals is a government company engaged in the business of providing loans, leasing and hire purchase services and providing financial services whereas in the other appeal, the assessee is a partnership firm running education institution. From the assessment order it is clear that there is no satisfaction recorded by the Assessing Officer regarding concealment of income or for furnishing any inaccurate particulars. Therefore, from the plain reading of the assessment order itself it is clear that the assumption of jurisdiction to levy penalty is lacking in the present case. The notice issued by the Assessing Officer has also not stated whether the penalty proceedings are initiated for concealment of income or for furnishing inaccurate particulars. The revenue is not in a position to show the mens rea in the present cases. Disallowance of certain claims neither amounts to concealment nor deliberate furnishing of inaccurate particulars of income. As unless and until there is some evidence or some circumstance to show that the omission was attributable to an intention or desire on the part of the assessee to conceal the income so as to avoid imposition of tax thereon. Thus, jurisdiction u/s 271(1)(c ) of the Act cannot be assumed. In the present case, we are of the view that the impugned orders passed by the Tribunal as well as CIT(A) are erroneous with regard to levy of penalty u/s 271(1)(c) of the Act. - Decided in favour of assessee
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