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2016 (1) TMI 789 - ALLAHABAD HIGH COURTPenalty u/s 271 (1)(c) - disallowance of expenditure - Held that:- A wrong explanation cannot amount to furnishing of an incorrect particular. The non-furnishing of explanation falls within the same zone of consideration unless there is any adverse evidence to indicate that the concealment was deliberate or incorrectly depicted in the return with a view to evade any liability. The explanation in relation to Section 271 (1)(c) as pressed into service read with clause (B) if read together, the same would clearly indicate that the ratio of the judgment in the case of Commissioner of Income Tax Vs. Reliance Petro Products Pvt. Ltd. (2010 (3) TMI 80 - SUPREME COURT ) is clearly attracted. The Commissioner Income Tax (Appeal) has specifically recorded that the variation in returned income and assessed income is disallowance of expenses not found allowable, no penalty under Section 271(1)(c) of the Act is imposable and once such a finding has specifically been recorded, the penalty proceedings in the facts and circumstances of the case can not be sustained. - Decided in favour of assessee.
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