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2023 (1) TMI 832 - ITAT AHMEDABADPenalty u/s 271(1)(c) - concealing the particulars of income received by the assessee from M/s Chandan Carrier (a business which was effectively owned by the assessee) - HELD THAT:- We observe that in the case of Patel Chemical Works [2008 (9) TMI 175 - GUJARAT HIGH COURT] held that in penalty proceedings, factum of very same income having been offered to tax by different entity and having been taxed substantially in hands of other entity becomes a relevant factor for determining whether assessee has concealed said income or furnished inaccurate particulars regarding said income which has already been taxed after being shown in hands of different entity, namely, other than assessee. Now coming to the instant facts, we observe that the income which was sought to be taxed in the hands of the assessee has already been offered to tax as income in the hands of Shri Nilesh Shah for the impugned assessment year and the assessment proceedings have also been completed by the AO in respect of such income. Primary reason for levy of penalty is that the firm M/s Chandan Carrier is effectively held by the assessee, however, it is also a fact that the said income which is sought to be taxed by the AO in the hands of the assessee has already been offered to income by Shri Nilesh Shah (proprietor M/s Chandan Carrier). Therefore, respectfully following the decision of Gujarat High Court in the case of Patel Chemical Works [2008 (9) TMI 175 - GUJARAT HIGH COURT] we hold that this is not a fit case for levy of penalty u/s 271(1)(c) of the Act and we hereby direct that the penalty may be deleted. Appeals of the assessee are allowed.
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