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2021 (3) TMI 477 - AT - Income TaxPenalty u/s 271(1)(c) - Inaccurate particulars of income on account of treating the purchases as non–genuine - HELD THAT:- Because the assessee has accepted the assessment order and for buying peace if the assessee agrees to face the disallowance so made by the Assessing Officer, it does not mean the assessee has concealed inaccurate particulars of income which is resulted in imposition of levying penalty under section 271(1)(c). AO has failed to meet the conditions of imposing penalty under section 271(1)(c) of the Act and hence, the penalty levied, in our opinion, is not sustainable in the case when the income enhanced based on estimation. We find that the assessee had furnished all the details of purchases as well as the income accrued was shown in the return of income. Even the payments made were by way of issuing cheques which were not considered by the Assessing Officer. Merely because the assessee has claimed the expenditure which was not acceptable to the Revenue that by itself does not mean that the assessee has concealed its particulars of income. With these observations, we hold that the learned Commissioner (Appeals) has properly held that the addition made on account of disallowance of a percentage of expenditure as bogus automatically cannot justify the penalty levied under section 271(1)(c) - Decided against revenue.
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