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2017 (7) TMI 497 - HC - Income TaxLevy of penalty u/s 271(1)(c) - sales to parties covered under Section 40A (2)(b) - Held that:- Assessee cannot be held guilty for non-disclosure of income, which was determined by invoking discretionary jurisdiction under Section 40A (2)(b) of the Act.In this view of the matter, the Tribunal held that where deeming provisions are applied in assessing the income, the provisions of imposing penalty would not be attracted. There is no concealment of income or furnishing of an incorrect particulars of the income, the penalty cannot be imposed on account of addition of income by applying the deeming provisions. Accordingly, we are of the opinion that the Tribunal has not committed any error of law in removing the penalty imposed by the Assessing Authority. - Decided in favour of assessee.
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