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2014 (7) TMI 633 - ITAT HYDERABADLevy of penalty u/s 271(1)(c) of the Act – Actual turnover higher than disclosed in return – Held that:- The assessee has maintained two sets of books of account - one set was maintained for Income-tax authorities wherein systematically the assessee had been disclosing to the lower sales and thereby declaring lower income by concealing its income - The other set of documents contains the actual amount of sales - It was in the knowledge of the assessee, but, in fact, is a well planned and executed tax evasion so as to defraud the revenue - the additions cannot be termed as agreed additions because there is nothing that the assessee had agreed to suo moto - the conduct of the assessee has been such that it certainly calls for the levy of penalty. The assessee arranged its financial affairs in such a way as to write duplicate sets of account - portions of the duplicate accounts are seized during search operations - In the return of income filed consequent to the search operations, the assessee does not disclose either its true turnover or the true profit percentage - additions have to be resorted to and the turnover is ultimately confirmed at the stage of first appellate proceedings – relying upon CIT vs. HCIL Kalindee ARSSPL [2013 (8) TMI 245 - DELHI HIGH COURT] - the conduct of the assessee is far from bona fide and there was a clear-cut strategy to not only evade taxes, but also to file inaccurate particulars of income even after search operation - the penalty u/s 271(1)(c) of IT Act is confirmed – Decided against Assessee.
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