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2022 (2) TMI 522 - AT - Income TaxPenalty u/s 271(1)(c) - difference in the receipt shown by the assessee and the payment/ receipt shown in Form-26AS on account of receipt - CIT(A) upheld the action of AO by taking view that no appeal was filed by the assessee against such addition - HELD THAT:- We find that the assessee has no occasion to file appeal, when the assessee himself offered the difference of receipt during the assessment. On the submissions of the assessee, CIT(A) called remand report from the assessee. AO furnished his remand report vide his report dated 12.02.2020. The AO in his remand report submitted that the assessee has not entered bill number in the ledger account of Insecticide India Ltd in the books for AY 2014-15, and that the assessee not raised the issue of double taxation in AY 2014-15 - no appeal in quantum assessment is filed by the assessee in AY 2012-13. As already held that the assessee has no cause of action to file against the addition which was offered by them during the assessment. From the remand report of AO, we find that there is no express denial of AO that the same receipt is not considered and offered for taxation in AY 2014-15. When the assessee has inadvertently not included the said receipt and has already included in AY 2014-15, and has already been taxed twice, therefore, in peculiar facts of the case, the assessee cannot be treated as not guilty of penal action u/s 271(1)(c). Penalty on addition on reconciliation of accounts amongst the appellant and the vendor - We find merit in the submissions of the Ld. AR of the assessee that the addition in assessment was based only due to the difference of reconciliation. We further noted that the assessee had not claimed deduction of such expenses, thus, mere addition of such amount will not attract the penalty under section 271(1)(c). Hence, the A.O. is directed to delete the entire penalty. Thus, the grounds of appeal raised by the assessee are allowed.
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