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2012 (8) TMI 993 - ITAT MUMBAIPenalty levied u/s. 271(1)(c) - omission or commission on part of the assessee-company - Held that:- In the case under consideration, assessee-company was cheated by its employees and the AO has admitted the said fact by allowing defalcation in subsequent AY. In these peculiar circumstances, if the assessee could not support the claim made by it, during the assessment proceedings, it cannot be held that it had filed inaccurate particulars. Return of income, for the A.Y.under consideration had been filed before the fraud was be detected. So, if wrong claims were made by the assessee-company, on the basis of the material supplied by the employee-CA, penal provisions should not have been invoked. Lodging of a police complaint and subsequent arrest of the ex-employee of the company prove that assessee company had no role in filing inaccurate particulars rather it was a victim of a fraud. Penalties under the Act are imposed for some omissions and commissions. In our opinion, in the case under consideration it cannot held that there was any omission or commission on part of the assessee-company for which it should have been visited by penalty u/s. 271(1)(c) of the Act.
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