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2021 (8) TMI 454 - AT - Income TaxPenalty u/s 271(1)(c) - addition u/s 68 - HELD THAT:- We find that the Coordinate Bench of Tribunal [2018 (5) TMI 2079 - ITAT DELHI]has remanded the matter pertaining to the addition made u/s. 68 of the Act to the file of AO for fresh adjudication as per the directions contained therein. Thus the addition is yet to be finalized. Sub Clause (iii) of Section 271(1)(c) provides mechanism for quantification of penalty. Assessee would be directed to pay a sum in addition to taxes, if any, payable by him, which shall not exceed three times the amount sought to be evaded by reason of concealment of income or furnishing of inaccurate particulars of income. In other words, quantification of penalty is dependent upon the additions made to the income of the assessee. Thus until the issue regarding the determination of income is finalized, penalty u/s. 271(1)(c) of the Act cannot be imposed upon the assessee. In the present case, the addition to the income is yet to attain finality. In such a situation, there cannot be any question of levying of the penalty u/s. 271(1)(c) - Appeal of the assessee is allowed.
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