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2019 (4) TMI 1526 - AT - Income TaxPenalty u/s 271(1)(c) - non specification of charge - without specifically mentioning the proceedings whether the proceedings are initiated on the ground of concealment of income or on account of furnishing of inaccurate particulars - bonafide belief - Receipt of accommodation entries - HELD THAT:- Keeping in view of the facts and circumstances and following the case laws SHAH RUKH KHAN [2018 (6) TMI 147 - ITAT MUMBAI], the issue relating to validity of the proceeding u/s 271 (1)(c) was rightly held to be not tenable and therefore, this ground was correctly dismissed by the Ld. CIT(A), which does not need any interference on my part, hence, I uphold the action of the Ld. CIT(A) on the issue in dispute and dismiss the ground raised by the Assessee. Even otherwise, the assessee has failed to controvert the facts by the AO that the said amount of ₹ 10 lakhs was an accommodation entry and that it has furnished inaccurate particulars of income resulting in a concealment of income. There is no explanation whatever as envisaged u/s 271 (1)(c) has been adduced. In fact the explanation 1 to section 271 (1)(c) is also not found to be giving any relief to the assessee for accepting the addition of the income. It is not the case of the assessee that it has a bonafide explanation for the said receipt of ₹ 10 lakhs not offered for taxation. In the present case the assessee failed to adduce a bonafide explanation within the scope of explanation 1 to section 271(1)(c), hence, the Ld. CIT(A) has rightly confirmed the penalty in dispute, which does not need any interference, hence,uphold the action of the Ld. CIT(A) on the issue of dispute and reject the grounds. - Decided against assessee.
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