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2012 (12) TMI 486 - ITAT PUNEPenalty u/s 271(1)(c) – Whether penalty u/s 271(1)(c) can be levied on the additional income disclose in ROI filed in response to notice u/s 148 – Assessee deputed to India as an employee of Foreign Company – Filed his ROI declaring income as salary received India – AO issue notice u/s 148 – Assessee disclosed in ROI filed in response to notice u/s 148 additional income which he earned outside India from their employer – AO completed the assessment and initiated penalty u/s 271(1)(c) – Assessee argued that the position taken by the company and consequently by the assessee in original return of income was bonafide and was based on judicial precedent and it did not amount to concealment of income - Held that:- Following the decision in case of Glories Realty (2009 (1) TMI 526 - ITAT MUMBAI) that penalty is not an automatic consequence of addition to income. Penalty u/s 271(1)(c) can come into play only when the conditions laid down under that section are satisfied, concealment of income cannot be a passive situation and it implies that the person concealing the income is hiding, covering up or camouflaging an income. Therefore, penalty is not leviable in case where assessee is able to provide a 'bona fide' explanation and made errors under bona fide beliefs. Appeal decides in favour of assessee
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