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2016 (6) TMI 87 - AT - Income TaxLevy of penalty u/s.271(1)(c) on the additions made while framing the assessment u/s.153C - Held that:- There can hardly be any dispute about the settled legal position that quantum and penalty proceedings stand on different footing and each and every addition of undisclosed income does not lead to imposition of penalty. We observe in these facts and circumstance that we are dealing with a tax statute wherein levy of penalty by invoking a penal provision after finalization of quantum is not automatic. We view the case from this angle and hold that the present one is an instance where assessee has not been able to substantiate his explanation of having spent the impugned expenditure limit for his employer company for the purpose of the business and also the Revenue has failed to refer to the employer's books so as to negate the same by holding that the very sums have not been claimed as expenditure. We reiterate: that this is a penalty case liable to be strictly interpreted. This factual position leads us to a conclusion that the authorities below have wrongly imposed the impugned penalty u/s.271 (1)(c) of the Act. - Decided in favour of assessee
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