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2014 (6) TMI 527 - ITAT AHMEDABADLevy of penalty u/s 271(1)(c) of the Act - Addition made u/s 68 of the Act – Gifts received from various persons - Held that:- The declaration of gift was filed by the assessee - Copies of the declarations are furnished in a compilation - assessee has also furnished the photocopies of the return filed by those donors – Relying upon National Textiles Versus Commissioner Of Income-Tax [2000 (10) TMI 19 - GUJARAT High Court] – Explanation 1 does not make the assessment order conclusive evidence that the amount assessed was in fact the income of the assessee - penalty has been levied by invoking the deeming provisions u/s 68 of the IT Act – the deeming provisions cannot be extended to hold that the assessee has concealed the income especially when the assessee has placed on record certain evidences such as gift declarations and bank accounts to show that the gift was received under bona fide belief that the same was a genuine gift - it was taxed during assessment proceedings but the penalty u/s 271(1)(C) cannot be levied automatically – thus, the order of the CIT(A) is set aside – Decided in favour of Assessee.
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