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2015 (2) TMI 1105 - ITAT AHMEDABADPenalty u/s. 271(1)(c) - unexplained cash credit under section 68 - Held that:- It is undisputed facts that on the addition of ₹ 15 lacs made u/s. 68 by A.O. penalty u/s. 271(1)(c) has been levied by A.O., which has also been confirmed by CIT(A). It is also a fact that assessee has disclosed all the material facts before the A.O. and has also submitted the explanation which has not been found to be false. It is a well settled law that penalty proceedings are entirely distinct from assessment proceedings and however relevant and good, the findings in assessment proceedings may not be conclusive so far as penalty proceedings are concerned. It is well settled that the parameters of judging the justification for addition made in the assessment proceedings is different from the penalty imposed on account of concealment of income or filing of inaccurate particulars of income and that certain disallowance/additions could legally be made in the assessment proceedings on the preponderance of probabilities but no penalty could be imposed u/s.271(1)(c) of the Act on preponderance of probability and the Revenue has to prove that the claim of the assessee was not genuine or was inflated its tax liability. Further merely because additions have confirmed in appeal or no appeal has been filed by assessee against additions made, it cannot be the sole ground for coming to the conclusion that assessee has concealed any income. Considering the aforesaid and peculiar facts of the case, we are of the view that in the present case, no case for penalty has been made - Decided in favour of assessee
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