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2017 (8) TMI 274 - AT - Income TaxPenalty under section 271(1)(c) - disallowance of liasoning commission - satisfaction regarding concealment of income - Held that:- As during the course of assessment proceedings, the assessee submitted complete details of sub-agents rendering services for the assessee in the State of Haryana. Their statements were recorded in which they have confirmed having received the payment after deduction of TDS and service tax. The assessee, thus, has disclosed all the material facts to the Revenue authorities. In the assessment year 2005-06, in the original scrutiny proceedings, the Assessing Officer allowed a similar claim of the assessee on the same set of facts. Therefore, there is no finding by the authorities below that any details or explanations given by the assessee in his return are found to be incorrect or erroneous or false. A mere making of claim which is not sustainable in law, by itself will not amount to furnishing inaccurate particulars regarding income of the assessee. Merely because the commission expenses have been disallowed in the assessment year under appeal and confirmed by the appellate authority, by itself is no ground to levy the penalty under section 271(1)(c) of the Act against the assessee. - Decided in favour of assessee.
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