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2019 (12) TMI 256 - ITAT DELHILevy of penalty u/s penalty u/s 271(1)(b) - addition of penalty expenses on account of excise duty - Concealment of income or not - non-disclosure of material facts - HELD THAT:- During the course of assessment proceedings the AO asked the assessee about the expenses on account of excise duty of ₹ 2,01,285/- made being penalty which was detected by the AO during the course of assessment proceedings and assessee has accepted and paid the tax thereon and did not file any appeal before the Ld. First Appellate Authority against the addition in dispute on which the penalty has been imposed. The assessee has concealed its income and has not disclosed in the return of income and not paid the tax thereon. But only on asking by the AO about the expenses on account of excise duty amounting to ₹ 2,01,284/-, the assessee accepted his fault thereon and did not file appeal against this addition also. Even otherwise the amount in the nature of penalty for violation of excise law which the assessee has paid is not a business expenses. These facts also not disclosed in the return of income and were detected during the assessment proceedings. Therefore, that it was also a case of non disclosure of material facts which attracts Explanation 1 to section 271(1)(c) of the Act. No interference is called for in the well reasoned order passed by the Ld. First Appellate Authority - the grounds raised by the Ld. CIT(A) is rejected - appeal of assessee dismissed.
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