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2019 (2) TMI 701 - AT - Income TaxPenalty u/s. 271(1)(c) - Addition made of unsecured creditors as unexplained - Held that:- Though it is incumbent upon the authorities below while dealing the issue in a quasi Judicial proceeding, the same has not been performed by the AO nor by the First Appellate Authority. The documents so placed before us though were available before the Learned CIT(A) was not taken into consideration in its proper prospective. If those documents were really insufficient to reach the level of satisfaction to assess the bonafide of the assessee the CIT(A) could have called for details from the assessee in the penalty appeal proceeding, instead of doing so, simply on the basis of the finding of the Assessing Officer, the CIT(A) confirmed the penalty which in our considered view is arbitrary, erroneous and of course not in accordance with law. We, therefore, respectfully relying upon the judgment passed by the Jurisdictional High Court decide the issue against the Revenue. We find that the order imposing penalty as made by the Learned AO, confirmed by the Learned CIT(A) is without any firm basis and/or independent enquiry which failed to have been conducted by the Authorities below. Such finding culminating into the order of the imposition of penalty is bad and liable to the quashed. We, thus, allow the appeal filed by the assessee.
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