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2018 (5) TMI 1589 - AT - Income TaxLevy of penalty u/s 271(1)(c) - Held that:- AO had failed to strike off the irrelevant default in the show cause notice - assessee is not informed and rather is left guessing of the default/defaults for which he is being proceeded against for - thus AO had clearly failed to discharge his statutory obligation of fairly putting the assessee to notice as regards the default/defaults for which he was being proceeded against - hence penalty cannot be sustained - decided in favor of assessee Rejection of books of account u/s 145(3) - disallowance of exemption u/s 10B relating to interest income from fixed deposits, sale of scrap and other miscellaneous business receipts- addition u/s 41(1) on account of non-genuine creditors - Held that:- assessee has treated the said income as business income and claimed deduction u/s 10B - relying on the judgment of Apex Court in the case of Pandian Chemicals Ltd. 2003 (4) TMI 3 - SUPREME COURT -assessee's claim is denied - Decided against the assessee Additions u/s 41(1) - balances lying with the sundry creditors - Held that:- assessee is directed to file the required evidences to demonstrate the credit balances of the sundry creditors - AO shall grant reasonable opportunity of being heard to the assessee in accordance with set principles of natural justice - allowed for statistical purposes.
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