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2021 (8) TMI 24 - AT - Income TaxPenalty levied u/s 271(1)(c) - assessee failed to explain the excess liability and no further appeal was filed by the assessee against the additions - HELD THAT:- We find that the lower authorities while considering the reply of the assessee, filed in response to the show cause notice for levying the penalty, has not held that the reply of the assessee is false. On independent consideration of the reply of assessee, filed in response to the show cause notice under section 274 read with section 271(1)(c). We find that the assessee has given reasonable and plausible explanation that the accountant has committed mistake while preparing the accounts as the credit note sent by the sundry creditor was not came to his notice and there was attempt for tax evasion as the assessee suffered loss. In our view it was sufficient explanation and reasonable within the scope of section 273B of the Income tax Act. Thus, we accept the secondary submissions of the ld AR for the assessee and direct the assessing officer to delete the penalty levied under section 271(1)(c) of the Act. Considering the facts that we have deleted the penalty on merit, therefore, the discussions and adjudication of the technical or legal issue, raised by issue, has become academic. In the result the grounds of appeal raised by the assessee are allowed.
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