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2008 (1) TMI 472 - AT - Income TaxLevy of penalty u/s 271(1)(c) - For Concealment Of Income - payment of commission - HELD THAT:- In our considered view the assessee had offered an explanation which on the face of it appears to be bona fide inasmuch as the addresses of the persons given by the assessee were found correct and there is no finding by the Assessing Officer that those are not the addresses of artisans claimed or that those persons did not receive any commission from the assessee. Payment of commission to villagers/artisans/uneducated persons through bearer cheques is a common phenomenon. Unless it is found that money of bearer cheques did not really go to the payee, it cannot be presumed that payment as claimed was actually not so made. It is clear that no penalty for concealment of income can be levied by merely disbelieving on explanation by the assessee. There has to be some positive material collected and referred by the Assessing Officer which would show that either the assessee has concealed the particulars of income or furnished inaccurate particulars. There has to be something for comparison to prove that what was claimed by the assessee was false or inaccurate. Mere disbelieving on the claim made by the assessee is not sufficient. The Assessing Officer could have in the present case enquired and shown that the addresses of the artisans are not correct, or they have not received the payment or that they have denied to have rendered any services, or money on bearer cheques have not gone to the artisans/mechanics or has been received back by the assessee or things similar to this highlighting the inaccuracy in the story or explanation furnished by the assessee. In the absence of such finding and material relating to these, it is not possible to hold that the assessee had concealed particulars of his income by way of claiming expenses on commission or has filed inaccurate particulars relating thereto. As a result, penalty so confirmed by the learned CIT(A) cannot be upheld. It is accordingly cancelled. In the result, the appeal filed by the assessee is allowed.
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