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2017 (3) TMI 1177 - AT - Income TaxPenalty u/s 271(1)(c) - additional income offered on account of shortage of stock - Held that:- The assessee had included the said income in his hands and had claimed set off of brought forward losses, however, the same was denied to the assessee. Merely because the set off has been denied to the assessee does not justify the levy of penalty under section 271(1)(c) of the Act. Upholding the order of CIT(A) in this regard we dismiss the ground of appeal raised by the revenue. Restricting the addition added in the hands of the assessee on account of unexplained investment in furniture and office building - Held that:- The assessee during the course of assessment proceedings agreed to the addition of sum of ₹ 50 lakhs as part of his computation of income and its non adjustment against the current business loss. The offer made by the assessee was in the spirit of reaching quietus and to end the litigation which had arisen in the instant case. The assessee had infact claimed the set off of that income against the business loss arisen for the year under consideration and merely because the same has not been set off, it cannot be said to be concealment of income. The view of the assessee have not been accepted by the Assessing Officer, but the same does not justify levy of penalty under section 271(1)(c) of the Act. Accordingly, we direct the Assessing Officer to delete the same. The Grounds of appeal raised by the assessee are thus allowed.
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