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2016 (6) TMI 429 - ITAT HYDERABADPenalty u/s 271(1)(c) - estimation of income u/s 44AF - Held that:- The assessee is a small trader involved in bamboo business and filed his return of income by estimating the income u/s 44AF. Therefore, the assessee is not required to maintain any books of account as per the provisions of section 44AF and relaxation available to these kind of assessees. Hence, the assessee had filed the return of income and AO has not found any mistake or not found any discrepancies in the return of income, in this regard, the concealment of income is ruled out. Coming to the submission of inaccurate particulars, AO had sent the notice u/s 143(2) asking for information on the investment made by the assessee. Assessee had filed the relevant information called for. The Assessing Officer had attempted to investigate the genuineness of the document and persons involved in signing the agreement. The documents were found to be genuine and the persons involved are not traceable due to efflux of time i.e. after expiry of 5 years. Since assessee had discharged the initial burden of proof and considering the substantial time lag, we are inclined to adjudicate the issue in assessee’s favour as this case is not a fit case to levy penalty u/s 271(1)(c) of the Act. Accordingly, the penalty is deleted and grounds raised by the revenue are dismissed.- Decided in favour of assessee.
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