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2022 (2) TMI 502 - HC - Income TaxPenalty u/s 271(1)(c) - Whether non striking of the inaccurate portion by itself invalidates the notice? - unexplained purchase and sale - HELD THAT:- We find that the CIT(A) rightly held that merely because a wrong claim was made by the assessee with regard to the expenses incurred for construction of a compound wall that by itself will not be a reason to impose penalty and, accordingly, vacated the penalty on the said head. With regard to the unexplained purchase and sale, the CIT(A) took note of the explanation offered by the assessee and also the fact that the conduct of the assessee was not contumacious or wilful so as to impose penalty. Accordingly, the penalty imposed on the said head was also vacated. When the matter travelled to the Tribunal, the explanation which was given by the assessee and accepted by the CIT(A) was once again examined by the Tribunal and after noting several decisions as to under what circumstances penalty can be imposed under Section 271(1)(c) of the Act as also the fact that there was nothing on record to show that the assessee had purposely made a wrong claim, confirmed the order passed by the CIT(A). Thus, we find that there is no error committed by the CIT(A) or the Tribunal for us to interfere with the said order. Accordingly, the appeal filed by the revenue is dismissed and the substantial questions of law are answered against the revenue.
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