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2012 (10) TMI 514 - MADRAS HIGH COURTPenalty u/s 271(1)(c) - ITAT deleted the levy - Held that:- The findings of the Tribunal on the assessment was not on the ground of treating the claim as not bona fide. The assessment on the consumption of bottles made on the ground of alleged non-existence of two firms was rejected by the Tribunal by rendering a finding that the suppliers were very much in existence. On the 2% addition made to the bottles sent direct to the factory without entering into the books of accounts and on the price difference, the Tribunal ultimately sustained the addition to the extent of 25%. Going by the quantum appeal order agreeing with the assessee's contention that the additions made were not in respect of lack of bona fides, but on the circumstances stated in the order of the Tribunal. The absence of due care does not mean that the assessee was guilty of furnishing inaccurate particulars to conceal his income - the computation error based on the tax audit report was only an inadvertence; this would not raise a presumption against the assessee that the explanation was lacking in bona fides. As the assessee gave an explanation on each of the four heads, which was accepted by the CIT(A) & for inland flight charges the assessee had explained the circumstances under which the provision was sustained and further proof was produced before the CIT (Appeals) - no hesitation in confirming the order of the Tribunal, thereby rejecting the Revenue's appeal - in favour of assessee.
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