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2017 (2) TMI 1125 - AT - Income TaxPenalty u/s 271(1)(c) - whether the payment of transportation charges and claiming the same as deduction constituted concealment of income or filing inaccurate particulars of income? - Held that:- The penalty cannot be imposed merely on the basis that the assessee has not filed any appeal against the quantum addition and more so when the tribunal decision upholding the claim of the assessee to claim the payments of charges to Iraqi regime as admissible which stands upheld by the jurisdictional high court. The penalty proceedings are independent proceedings which are to be decided on the basis of merits of each case. In the present case, the Calcutta Bench of the Tribunal in Rajrani Exports (P) Ltd [2012 (6) TMI 62 - ITAT, Kolkata] has already decided that the payment made on account of transportation charges as admissible which cannot be disallowed on the basis of Volcker Committee report and hence penalty on such disallowance which is wrong and against the spirit of the Act cannot be sustained . Accordingly, we set aside the order of ld.CIT(A) and direct the AO to delete the penalty. - Decided in favour of assessee.
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