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2022 (5) TMI 1064 - AT - Income TaxPenalty u/s 271(1)(c) - treatment of income disclosed from ‘income from other sources’ to unexplained cash credits u/s.68 - HELD THAT:- We noted that there is no difference between assessed income and returned income. There is simpliciter change of head of income. The assessee declared this income under the head ‘income from other sources’ as this income has been earned by assessee as interest earned on jewel loans made to various parties but could not submit the evidences. In our view, the primary condition of the provisions of section 271(1)(c) i.e., tax sought to be evaded is a must for levying penalty u/s.271(1)(c) of the Act. This issue has been dealt in the case of CIT vs. Reliance Petroproducts Pvt. Ltd [2010 (3) TMI 80 - SUPREME COURT] wherein the Hon’ble Supreme Court has considered the term ‘particulars’ used in section 271(1)(c) of the Act, which would embrace the details of the claim made. The Hon’ble Supreme Court stated that where no information given in the return was found to be incorrect or inaccurate, the assessee cannot be held guilty of furnishing inaccurate particulars nor expose the assessee to penalty, unless the case is strictly covered by the provisions, the penalty provision cannot be invoked. Hence, in the present case the result of assessing the income either under the head ‘income from other sources’ or u/s.68 of the Act, the liability to pay any additional tax does not arise and once there is no tax sought to be evaded, penalty u/s.271(1)(c) of the Act cannot be levied. Accordingly, we reverse the orders of lower authorities and allow this appeal of assessee
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