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2017 (3) TMI 102 - AT - Income TaxPenalty u/s. 271(1)(c) - assessee offered the questioned amount in his revised return filed in response to notice issued u/s. 148 and paid taxes thereon - Held that:- As per the provision of Explanation 1 to section 271 (1), the onus to establish that the explanation offered was bona fide and all facts relating to the same and material to the computation of his income have been disclosed by him will be on the person charged with concealment. The explanation of the assessee for the purpose of avoidance of penalty must be an acceptable explanation; it should not be a fantastic or fanciful one. As indicated the consequence follows as a matter of law. The burden is on the assessee. If he fails to discharge that burden, the presumption that he had concealed the income or furnished inaccurate particulars thereof is available to be drawn. However in the instant case the assessee has explained the reasons for not including the particulars of income as discussed above which appears to be bonafide considering the facts and circumstances of the case. We are, therefore, of the view that the assessee could not be said to have filed "false" returns when it did not include the amount of interest and notional house property income in the taxable income in the above facts & circumstances. we also find force in the submissions of the Ld.AR that the assessee is old aged and disclosure of amounts in revised and payment of taxes thereon and taking into consideration the submissions, facts and circumstances of the case and we cancel the impugned penalty imposed by the AO and confirmed by the CIT-A. Therefore, this ground of assessee is allowed.
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