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2020 (7) TMI 431 - ITAT RAJKOTPenalty u/s 271(1)(c) - unaccounted sale - whether the assessee has concealed the particulars of income with respect to such business turnover not disclosed in the income tax return? - HELD THAT:- The term concealment of particular of income has not been defined under the provisions of section 271(1)(c) or elsewhere in the Act the Act - meaning of the term concealed /inaccurate has been discussed in the case of Reliance Petroproducts (P) Ltd [2010 (3) TMI 80 - SUPREME COURT] wherein it was held that the term ‘inaccurate’ signifies deliberate act or omission on the part of the assessee. As such, the details/informations contained in the return of income /financial statements /audit report which are not correct according to truth, and were furnished by the assessee with the dishonest intent shall be treated as inaccurate particulars. There was no information available with the Revenue for the unaccounted sale made by the assessee. Thus it is transpired that there was no deliberate act, on the part of the assessee not to disclose the business receipts in the income tax return. The Revenue has also not brought any material suggesting that the assessee deliberately furnished the inaccurate particulars of income. Addition/disallowances made during the quantum proceedings does not automatically justify the levy of the penalty under section 271(1)(c) - Besides the element of income added in the quantum proceedings, there must be some material/circumstantial evidences leading to the reasonable conclusion that there was conscious concealment or the act of furnishing of inaccurate particulars on the part of the assessee. We are not convinced with the finding of the authorities below. Hence we set aside the order of the learned CIT (A) and direct the AO to delete the penalty levied by him under section 271(1)(c). - Decided in favour of assessee. Order being pronounced after ninety (90) days of hearing - COVID-19 pandemic and lockdown - HELD THAT:- Taking note of the extraordinary situation in the light of the COVID-19 pandemic and lockdown, the period of lockdown days need to be excluded. See case of DCIT vs. JSW Limited [2020 (5) TMI 359 - ITAT MUMBAI]
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