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2019 (5) TMI 105 - AT - Income TaxPenalty u/s 271(1)(c) - Disallowance of expenses - AO has observed that the assessee has admitted qua a fact that he has furnished inaccurate particulars - HELD THAT:- What the assessee has admitted is that, in case the expenses are partly disallowed, then he did not dispute. It could not be construed that the assessee has admitted allegations that he has furnished inaccurate particulars. The AO has nowhere brought any material or reasoning for harbouring this plea. The only question is that, out of total expenditure claimed by the assessee, partly not accepted by the AO. His explanation qua the expenditure was not found to be false. The assessee could not substantiate his claim of expenditure with help of evidence. In these circumstances penalty upon the assessee cannot be imposed with help of Explanation 1 to section 271(1)(c) If the AO was able to demonstrate that the explanation of the expenditure given by the assessee was false, then his case can be appreciated. Penalty is not imposable upon the assessee - Decided in favour of assessee.
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