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2017 (7) TMI 572 - AT - Income TaxLevy of penalty u/s 271(1)(c)- Held that:- There is no iota of evidence on record to show that the income returned by the assessee was on the lower side. The addition also was made on adhoc basis without any shred of evidence in support of concealment of income to that extent. Clearly, the Assessing Officer accepted the contention of the assessee without making any further investigation either with regard to the income estimated or the income surrendered. The additions made are purely adhoc and mere estimations only which do not tantamount to concealment of particulars of income or furnishing of inaccurate particulars of income. The case laws relied upon by the Ld. CIT(A) while upholding the levy of penalty are mainly related to the attraction of the Explanation to section 271(1)(c), which we find is not applicable in the present case, since there is no finding of concealment of income or furnishing of inaccurate particulars of income in the first place for which the assessee was required to give any explanation. The assessee had on the first occasion admitted that it had estimated the income of its ahatas, even before the AO could discover anything adverse to this effect, which in any case, we find he did not, even after aforesaid admittance by the assessee and surrender of income on this account or for that matter on account of expenses. In view of the above, we set aside the order of the Ld. CIT (Appeals) and delete the penalty levied. - Decided in favour of assessee.
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