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2011 (6) TMI 501 - ITAT HYDERABADPenalty u/s 271(1)(c) - Search and seizure - Addition made on account of dis-allowance of expenses on estimate basis, unexplained credits, proceeds on sale of jewelery, income disclosed in the return - Held that:- The fact remains that the assessee has incurred expenditure but what was doubted was the business purpose of the expenditure. Mere making of claim, which is not sustainable in law, by itself, will amount to furnishing inaccurate particulars. Therefore, penalty u/s 271(1)(c) is not leviable. See CIT v. Reliance Petroproducts (P.) Ltd.(2010 (3) TMI 80 - SUPREME COURT) Unaccounted investment - Held that:- It is observed that impugned loans were not taken during the year and, thus cannot be said to be a source for investment in the purchase of land during the year. Even otherwise, the assessee has not led any evidence to prove the identity of the creditor, their creditworthiness, and the genuineness of the transaction. Also, document of sale of jewelery relates May, 1992, whereas matter relates to FY 1991-92, thus, evidence produced does not support the assessee's case as a source of investment. Therefore, penalty is leviable on this ground. AO is directed to recompute penalty - Decided partly in favor of asseseee.
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