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2006 (8) TMI 442 - ITAT MUMBAIPenalty imposed u/s 271(1)(c) - For concealment and inaccurate particulars of income - HELD THAT:- An assessment u/s 143(3) presupposes an assessment after enquiries. It is quite natural that there will be a number of adjustments either by way of additions or by way of disallowances. In certain cases, the assessee himself may come forward and offer some additional amount for assessment on the basis of the impression gathered at the time of assessment proceedings. These are all matters of common knowledge. These types of additions and disallowances will not make out a case of concealment or furnishing of inaccurate particulars. If the view of the Revenue is to be accepted, every addition or disallowance made in the course of an assessment would invariably result in imposing penalty which is nowhere implied as the intention of law. The other items of additions made by the Assessing Officer are by way of disallowance of various expenditures. Here also the assessee has furnished the details. All the expenses have been accounted. Certain disallowance were made. The assessee might not have agitated those additions. But that does not mean that the disallowances reflected concealment or furnishing of inaccurate particulars. Thus, it is our considered view that the Assessing Officer has overstated the gravity of the case and made out a case of penalty without any basis. The CIT(A) has appreciated the facts of the case in a rightful manner and has deleted the penalty which should have been rightfully deleted. The order of the CIT(A) is to be upheld. In result, this appeal filed by the Revenue is dismissed devoid of merit.
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