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2017 (7) TMI 571 - AT - Income TaxLevy of penalty under section 271(1)(c) - assessee made an incorrect claim - Held that:- In the present case that there was a transfer of assets for consideration which had been received by way of book entries and hence, the transfer is not a donation. It is evident from this finding of the I.T.A.T. that the explanation of the assessee that mere book entries were passed, crediting the transferors and debiting the corpus fund was found to be correct. But at the same time, it was interpreted on the same set of facts that the transfer was not by way of donation. In such circumstances, the assessee society at best can be held to have made an incorrect claim which does not tantamount to furnishing inaccurate particulars of income. Merely because the assessee did not return capital gains on the impugned transaction, which was added to the income of the assessee, penalty under section 271(1)(c) is not attracted. Mere non acceptance of the plausible enough explanation of the assessee in quantum proceedings will not tantamount to concealment of particulars of income or furnishing of inaccurate particulars of income to attract the levy of penalty under section 271(1)(c) of the Act. - Decided in favour of assessee.
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