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2020 (4) TMI 216 - AT - Income TaxPenalty u/s 271 (1)(c) - unsecured loan treated as unexplained cash credit under section 68 - whether the assessee has furnished inaccurate particulars of income with respect to the cash credit which were treated as unexplained under section 68 ? - HELD THAT:- Assessee failed to explain or furnish the basic details of the parties from whom it has taken loan during the year. Thus in the absence of explanation/ documentary evidence and the assistance from the side of the assessee, the Revenue cannot be held guilty in not discharging its onus in the present facts and circumstances. It is well-settled law that an obligation gets discharged due to impossibility of performance. The law of impossibility of performance does not necessarily require absolute impossibility, but also encompass the concept of severe impracticability - doctrine of impossibility of performance applies in this case. Due to uncontrollable circumstances, the performance of the obligation to verify the loan creditors was not possible by the Revenue as no details were furnished by the assessee. Thus the impossibility of performance releases the Revenue from its obligation to verify such liability in the present facts and circumstances. A default occurs only when an obligation is not performed. We find that the assessee has not furnished the basic details about the parties therefore we hold that the assessee has furnished inaccurate particulars of income. Regarding the contention of the assessee that there was no specific charge levied by the AO whether the assessee has concealed the particulars of income or furnished inaccurate particular of income, in this regard we note that the AO has mentioned the specific charge in the penalty order by stating that the assessee has furnished inaccurate particulars of income. Accordingly we hold that, the assessee cannot get the benefit of immunity from the penalty merely there was no specific charge in the penalty notice issued under section 274 of the Act or in the assessment order. - penalty in the present case was correctly levied by the AO which was subsequently confirmed by the learned - Decided against assessee.
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