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2016 (11) TMI 795 - HC - Income TaxPenalty under section 271(1)(c) - Held that:- The penalty under section 271(1)(c) is not sine qua non when there is no concealment of income or furnishing inaccurate particulars of income. Merely because there is difference between the income returned and income assessed as a result of disallowance made by the Assessing Officer, it cannot be said that the assessee has furnished inaccurate particulars of income. In the present case, outstanding expenses were not believed by the Assessing Officer but outstanding debt was believed. The authority ought to have either believed both or disbelieved both outstanding expenses and outstanding debt. There is no finding to the effect that the details furnished by the assessee are incorrect or false. In that view of the matter, relying on the decision of the apex court in the case of CIT v. Reliance Petroproducts Pvt. Ltd. [2010 (3) TMI 80 - SUPREME COURT], no penalty can be leviable. Hence the order dated February 25, 2008 passed by the Commissioner of Income-tax, Surat, under section 264 of the Act is quashed and set aside and the penalty under section 271(1)(c) of the Act imposed by the Assessing Officer vide order dated August 30, 2006 is also quashed and set aside. - Decided in favour of assessee
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