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2019 (12) TMI 764 - AT - Income TaxUnexplained cash credit u/s 68 - Penalty under section 271(1)(c) - HELD THAT:- The non–cooperation of the lenders in the enquiry conducted may be for various reasons. While confirming the addition in the quantum proceedings, one has to look at whether the ingredients of section 68 of the Act are established or not. Once the Appellate Authority on the basis of facts on record concludes that either the identity of the creditor or the genuineness of the loan transaction or the creditworthiness of the creditors are not established, addition can be made under section 68. The aforesaid finding has to be on the basis of facts/evidences brought on record during assessment proceeding. However, imposition of penalty under section 271(1)(c) is an independent proceeding wherein assessee’s explanation qua the charge brought against him has to be evaluated afresh in the context of materials on record. In the facts of the present case, the assessee did furnish necessary information with some supporting evidence in respect of loan received from 22 creditors aggregating to ₹ 39,38,000. Therefore assessee cannot be accused of furnishing inaccurate particulars of income or concealing income to that extent. Therefore, imposition of penalty on the addition and the corresponding interest thereon deserves to be deleted.
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