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2023 (6) TMI 217 - AT - Income TaxPenalty u/s. 271(1)(c) - cash payment in excess of Rs. 20,000 u/s 40A - payment in cash was made for hospital bills as the hospitals did not accept payment through cheques - HELD THAT:- AO was not correct and justified in holding that the assessee has not furnished accurate particulars of income and hence, concealed particulars of income and liable to be imposition of penalty u/s. 271(1)(c) of the Act on account of furnishing of inaccurate particular of income particularly in a peculiar situation in the present case that the assessee has disclosed and recorded entire amount of claim incurred on medical emergencies under commercial expediency in the books of accounts of assessee. As decided in Reliance Petroproducts (P) Ltd [2010 (3) TMI 80 - SUPREME COURT] merely because the claim of assessee was not accepted for not found to be acceptable by the revenue authorities the penalty u/s. 271(1)(c) of the Act, cannot be levied on the assessee. AO dismissed claim of expenditure of assessee on account of violation of section 40A(3) of the Act, without raising any other allegation or ground of dismissal and hence, when the assessee disclosed and recorded entire claim on medical emergencies in its books of accounts then neither it can be alleged that assessee has furnished inaccurate particulars of income or has concealed particular of its income. Decided in favour of assessee.
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