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2021 (6) TMI 807 - AT - Income TaxPenalty u/s 271(1)(c) - addition made by the AO on the basis of information received from the Sales Tax Department - unexplained expenditure under section 69C - HELD THAT - AO imposed penalty u/s 271(1)(c) on ad hoc basis without adducing any evidence on record for concealment of income. Penalty u/s 271(1)(c) is liable to be imposed only where the assessee has concealed its particulars of income or furnished inaccurate particulars. Action of making addition on ad hoc basis does not result into imposition of penalty u/s 271(1)(c) of the Act and hence cannot be termed as either concealment or furnishing of inaccurate particulars of income. We find support from the series of decisions by different High Courts as well the decision of the Co ordinate Benches of the Tribunal wherein it was held that when addition is made on estimate basis penalty is not sustainable in the eyes of law. Departmental Authorities has not brought any cogent material to prove otherwise warranting interference at the instance of the Revenue. In this view of the matter we are of the considered view that the learned Commissioner (Appeals) was indeed justified in deleting the penalty as there was no concealment of income on the part of the assessee have been proved by the Revenue and additions made on estimation by the Assessing Officer do not call for initiation of penalty. Revenue s appeal is dismissed.
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