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2019 (1) TMI 1053 - AT - Income TaxPenalty levied u/s 271(1)(c) - income declared under different head of income - rental receipts as business income or house property - Held that:- The assessee had shown rental receipts as ‘business income’, whereas the AO considered it to be taxable under the head ‘income from house property’. In the process the AO disallowed all expenditures including depreciation to the tune of ₹ 20,13,226/-. In the case of CIT v. Reliance Petroproducts (P) Ltd. [2010 (3) TMI 80 - SUPREME COURT] it has been held that merely because assessee had claimed expenditure, which claim was not accepted or was not acceptable to revenue, that by itself would not attract penalty u/s 271(1)(c). CIT v. Ajaib Singh & Co. [2001 (8) TMI 79 - PUNJAB AND HARYANA HIGH COURT] “that merely because certain expenses claimed by the assessee are disallowed by an authority, it cannot mean that the particulars furnished by the assessee are wrong. Disallowance of an expense per se cannot mean that the assessee has furnished incorrect particulars of its income. Concealment involves penal action. It has to be proved as a conscious Act. It is true that direct evidence may not be available in every case. Yet, it must be proved as a necessary corollary from the facts and circumstances established on the record. - Decided in favour of assessee.
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