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2019 (11) TMI 394 - AT - Income TaxPenalty u/s 271(1)(c) - as alleged no satisfaction was recorded with reference to concealment of income or furnishing inaccurate particulars of income - HELD THAT:- Payment was made through account payee cheques and subjected to TDS. The assessee also explained that these persons have offered the commission income to tax in their returns of income. The assessee also produced the confirmations of these persons along with the returns of income before the AO in the penalty proceedings. Once the assessee has brought all relevant evidences on record to show that the commission paid by the assessee which was surrendered as bogus was not actually bogus but a genuine payment, then the AO instead of going by the surrender made by the assessee ought to have conducted an enquiry to verify the correctness of the documentary evidences filed by the assessee and genuineness of the claim. Since the assessee surrendered this amount and paid the tax, therefore, the explanation of the assessee is relevant only to the limited extent of considering the same as reasonable and bonafide explanation under section 273B - Even otherwise, when the surrender is not based on any incriminating material but it is only based on the statement recorded during the survey, therefore, the evidentiary value of the statement recorded under section 133A in the absence of corroborating evidence cannot be a conclusive basis for holding the assessee liable for the penalty proceedings under section 271(1)(c) of the IT Act. Once the assessee has brought all relevant documentary evidences in support of the genuineness of the claim, then in the absence of any contrary finding by the AO, the said explanation would be regarded as bonafide and reasonable explanation under section 273B of the IT Act. Consequently, no penalty under section 271(1)(c) - Decided in favour of assessee.
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