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2018 (3) TMI 807 - AT - Income TaxLevying penalty u/s 271(1)(c) - addition made for clients deposit account - Held that:- We do not find it a fit case to sustain the penalty u/s. 271(1)(c). It is notable that the assessment proceedings and the penalty proceedings are separate proceedings and the Assessing Officer in the penal proceedings has to prove the offense in terms of provisions of section 271(1)(c) of the Act. In the instant case, it is not in dispute that the assessee had been showing the impugned amount as liability in the client deposit account. It is also born out on record that part of the amount received from the client stood deposited by the assessee. The dispute was as to the nature of amount lying in the account – whether in the nature of liability or income. In the quantum proceedings, the addition was, however, sustained as the assessee could not furnish any documentary evidence to support its claim. Relying on the decision in Reliance Petroproducts (2010 (3) TMI 80 - SUPREME COURT), mere making of a claim which is not sustainable in law, by itself, will not amount to furnishing inaccurate particulars regarding the income of the assessee, particularly when the assessee had shown some the reasons for not furnishing the supporting documentary evidence in the quantum proceedings. - Decided in favour of assessee.
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