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2018 (2) TMI 57 - HC - Income TaxPenalty u/s 271AAA - sufficient compliance with the provision if tax is shown to have been paid before the assessment was completed - Held that:- A conjoint reading of the provisions of clause (iii) of subsection (2) of section 271AAA of the Act and Explanation 5 to section 271(1) of the Act shows that the language employed in the second exception under Explanation 5 to section 271(1) is, “pays the tax together with interest, if any, in respect of such income” and clause (iii) of sub-section (2) of section 271AAA of the Act employs the language “pays the tax, together with interest, if any, in respect of the undisclosed income”. Thus, the language employed in both the sections is similar. Therefore, the Tribunal as well as the Commissioner (Appeals) were wholly justified in applying the principles enunciated by this High Court in Commissioner of Income Tax v. Mahendra C. Shah (2008 (2) TMI 32 - GUJARAT HIGH COURT) while interpreting the provisions of sub-section (2) of section 271AAA of the Act. Accordingly, the assessee has also satisfied the third condition laid down under sub-section (2) of section 271AAA of the Act. The Tribunal was, therefore, wholly justified in upholding the deletion of penalty under section 271AAA of the Act. - Decided in favour of assessee.
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