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2017 (2) TMI 739 - AT - Income TaxPenalty u/s 271(1)(c) - concealment of income on account of bogus purchases shown to have been made by assessee from Agra suppliers - dominant contention of the assessee has been that penalty is not leviable against the assessee, being 100% export oriented unit covered under deduction u/s 80HHC due to which the taxable income returned and assessed is at NIL - Held that:- The provision of section 271(1)(c) postulates imposition of penalty for furnishing of inaccurate particulars and concealment of income. In this case, the details of purchases furnished by the assessee were found inaccurate resulting into concealment of income, as the sellers, from whom the alleged purchases were shown to have been made, were found bogus and nonexistent. It is an admitted fact that the assessee failed to furnish the purchase vouchers and confirmations of the alleged sellers. Thus it is clear that the explanation offered by the assessee with respect to payments alleged to have been made from suppliers of Agra against purchases, was found false and unacceptable. Authorities below appear to have rightly imposed penalty irrespective of the fact that the total income including the impugned disallowance was eligible for deduction u/s. 80HHC and 80IA as provisions of section 271(1)(c) read with Explanations appended thereto, in our considered opinion, the eligibility for 100% deductions u/s. 80HHC or 80IA, would not mitigate the rigors of penal provisions for the reason the provisions of section 80HHC and 80IA merely provide for tax holiday on the turnover of assessee, but cannot exonerate the assessee from penal consequences as per provisions of section 271(1)(c) of the Act. - Decided against assessee.
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