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2018 (5) TMI 999 - AT - Income TaxLevy of penalty under section 271(1)(c) - income from other sources - wrong claim of deduction of the expenditure deliberately - Held that:- The assessee declared income from other sources. Therefore, it is the duty of the assessee to explain that expenses related to income from other sources have any direct nexus with the earning of such income. A.O. found specific fact against the assessee that assessee made a wrong claim of expenditure against the income from other sources. The assessee failed to prove any direct nexus with the expenses claimed with income from other sources. The assessee was, therefore, confronted with the fact vide order sheet dated 23rd September, 2016 and 06th October, 2016 as to why the claim of the assessee should not be disallowed. The assessee had no explanation but to accept the addition proposed by the A.O. Claim of assessee of deduction for expenditure was found false and bogus. It is, therefore, clear case, where fact of filing inaccurate particulars have been detected by the A.O. at assessment stage that assessee made a wrong claim of deduction of the expenditure deliberately. It is a common knowledge that only few returns are selected for scrutiny. If the assessee makes a claim which is not only incorrect in law but is also wholly without any basis and the explanation furnished by him for making such claim is not found to be bonafide, it would be difficult to say that assessee would still not liable to penalty under section 271(1)(c). Decision in the case of Zoom Communication Pvt. Ltd., (2010 (5) TMI 34 - DELHI HIGH COURT), squarely applied to the facts of the case. - Decided against assessee
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