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2019 (2) TMI 1056 - AT - Income TaxLevy of penalty u/s. 271(1)(c) - concealment or inaccurate particulars of income - HELD THAT:- We find that the assessment in this case has been completed on the returned income. Hence, when the return of income and the assessed income are same, the machinery provision for levy of penalty u/s. 271(1)(c) fails, as the penalty u/s. 271(1)(c) is levied with reference to the tax sought to be evaded, which is the difference between the income returned and that assessed by the A.O. In this case, since the assessed income and the returned income are the same, the machinery provision of penalty u/s. 271(1)(c) fails. In this regard, we draw support in the case of CIT vs. SAS Pharmaceuticals [2011 (4) TMI 888 - DELHI HIGH COURT] as expounded that penalty u/s. 271(1)(c) can only be levied if in the course of proceedings, the A.O. is satisfied that there is an concealment or furnishing of inaccurate particulars. The words "in the course of any proceedings under this Act mean the assessment proceedings". However, the question ‘whether there is concealment or inaccurate particulars’ has to be determined with reference to the returned income. Delete the levy of penalty. - Decided in favour of assessee.
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