9911796707
TMI Blog2014 (7) TMI 1064X X X X Extracts X X X X X X X X Extracts X X X X ..... d perusing the record, the delay in filing the appeal is condoned and the appeal is admitted for hearing. 3. The facts as culled out from the material on record are as under. 4. Assessee is a company engaged in the business of executing the contracts for construction of plants for different industries. Assessee filed its return of income for AY 02-03 on 31.10.2002 declaring Total income of Rs. 7,80,292/-. The case was selected for scrutiny and thereafter assessment was framed u/s 143(3) vide order dated 23.3.2005 and the total income was determined at Rs. 61,75,700/- by making addition of Rs. 29,14,430/- on account of suppressed work in progress and addition of Rs. 1,10,342/- on account of late payment of PF. On the addition of Rs. 29,14, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... took us through the orders of AO and CIT(A) and supported their orders. 6. We have heard the rival submissions and perused the material on record. We find that in the present case addition on account of Work in progress was initially made at Rs. 29,14,430/- which was scaled down to Rs. 10,96,700/- by Tribunal. On the amount of addition which was finally upheld, penalty u/s. 271(1)(c) was levied by A.O. 7. The penalty under section. 271(l)(c) of the Act is leviable if the AO is satisfied in the course of any proceedings under the Act that any person has concealed the particulars of his income or furnished inaccurate particulars of such income. It is well settled that assessment proceedings and penalty proceedings are separate and distinct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... annot automatically lead to the conclusion that there was concealment of particulars of his income by the assessee or furnishing inaccurate particulars thereof. What is to be seen is whether the said claim made by the assessee was bona fide and whether all the material facts relevant thereto have been furnished and once it is so established, the assessee cannot be held liable for concealment penalty under s. 271(1) (c) of the Act. In the present case since all the necessary facts were furnished and the fact that the addition has been substantially reduced in appeal by the coordinate bench of Tribunal, we are of the view that the addition that was sustained does not call for levy of penalty under s. 271(l)(c). We thus cancel the penalty levi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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