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2020 (9) TMI 26 - AT - Income TaxLevy of penalty u/s 271(1)(c) - investment in unaccounted purchases made by the AO pursuant to survey conducted at the premises of the assessee - HELD THAT:- On perusal of the order passed by the Tribunal, we find that there is a clear finding recorded that it is a case of unrecorded sales which has not been disclosed by the assessee at the time of filing of return of income and we therefore agree with the contention of the ld DR that the penalty has been rightly levied in this case invoking provisions of section 271(1)(c). Not agree with the contention AR that the Tribunal has restored the income as declared in the return of income in view of the clear finding of the Tribunal where the AO is directed to restrict the addition to the extent of profit on undisclosed sales. At the same time, where the very basis of levy of penalty, being the quantum addition, has been restricted by the Tribunal to ₹ 18,566/- in the quantum proceedings, the consequent levy of penalty u/s 271(1)(c) shall also be required to be computed on the said amount of ₹ 18,566/- as against the addition made by the AO. AO is directed to recompute the penalty u/s 271(1)(c) by taking the quantum addition of ₹ 18,566/- as the basis for such levy as confirmed by the Tribunal in the quantum proceedings and the remaining penalty is hereby directed to be deleted. - Decided partly in favour of assessee.
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