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2017 (2) TMI 635 - ITAT AHMEDABADPenalty u/s 271(1)(c) - addition made on account of alleged undervaluation of closing stock - Held that:- The assessee who is dealing into the business of diamond having a wide range of varieties and there is uncertainty about correct valuation of such items even then assessee had properly maintained quantitative records, proper books of account duly audited, consistent adoption of method of valuation at “cost price or at market price whichever is less” and the basis of finding by the Revenue for valuing of closing stock at average cost taken from the records of assessee itself, clearly shows that assessee has not furnished inaccurate particulars of income nor has it concealed any particular of income and in such case where there is only a claim of valuation of closing stock by certain method which is bonafidely deemed correct by the assessee but not accepted by the Revenue, we are of the confirmed view that assessee should not have been visited with penalty u/s. 271(1)(c) of the Act. We accordingly delete the penalty u/s 271(1)(c) - Decided in favour of assessee
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