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2022 (3) TMI 667 - AT - Income TaxPenalty u/s 271(1)(c) - Ex-party order passed by AO - Addition u/s 68 - assessee has deposited cash into bank account and no explanation has been provided for the same - HELD THAT:- AO has failed to consider the fact that all the notices were send by speed post and have been received by member of Sahakari Samiti. He explained that the members who received those notices failed to communicate the same to the executives of Sahakari Samiti. Where they could not comply with any notices issued by the Ld AO. In our opinion, AO has erred in passing Ex-party order without giving opportunity to the assessee in furnishing the documentary evidences. The AO has not verified whether the notices sent was received by the assessee. If the disclosure of facts is incorrect or false and to the knowledge of the assessee and it is established, then such disclosure cannot take it out from the purview of the act of concealment of particulars or furnishing inaccurate particulars, thereof for the purpose of levy of penalty. The penalty u/s 271(1)(c) is liveable, if the Assessing Officer is satisfied in the course of any proceedings under this Act that any person has concealed the particulars of his income or furnished inaccurate particulars of such income. In the present case, the AO passed ex-parte order and has levied penalty for concealment of such income or non furnishing of particulars u/s 271(1)(c). Rightly pointing the issue is that the assessee has not replied or non compliances for the notice issued by the AO, where the penalty should be levied u/s 271(1)(b). Commissioner of Income-tax (Appeals) erred in holding that penalty u/s 271(1)(c) is liveable. He erred upholding the order by the AO, Where the assessee made an attempt to explain and submitted detailed written submissions before CIT(A) and produced the evidences of Bank Accounts, Bank certificate and details of cash deposits also.. There is no failure on part of the assessee in explaining the source of cash deposit, the Bank Statement, Bank certificate. There is no finding of the AO based on some contradictory evidence to disapprove that explanation offered by the assessee was false or the assessee was not able to substantiate the explanation furnished or fails to prove that such explanation is not bona fide and that all the facts relating to the same and material to the computation of his total income has not been disclosed by him. - Decided in favour of assessee.
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