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2023 (4) TMI 286 - ITAT AHMEDABADPenalty levied u/s 271(1)(c) - charge of furnishing inaccurate particulars of income - HELD THAT:- Penalty proceedings are independent and distinct to assessment proceedings/quantum proceeding. Any addition or disallowance made under quantum proceeding does not ipso facto empower the revenue authority to levy penalty under section 271(1)(c) of the Act. In the penalty proceeding, it must be proved by the revenue based on cogent material that the assessee has either concealed income or furnished inaccurate particulars of income. Basis adopted during the assessment proceedings cannot be used in the penalty proceedings without following the due process. As such, to levy penalty under section 271(1)(c) of the Act, the revenue has to reach to unambiguous finding that the income assessed in the hand of the assessee represent actual income which has been either concealed or inaccurate particular has been furnished with regard to such income. See National Textiles vs. CIT [2000 (10) TMI 19 - GUJARAT HIGH COURT] Penalty cannot be imposed upon the assessee merely on the reasoning that a particular amount assessed as income in the hand the assessee. As in case on hand the assessee in the original return of income filed under section 139 of the Act claimed exempted long-term capital which has been withdrawn in the return filed in response to notice under section 148 of the Act and due taxes on the same was deposited. The returned income was accepted by the Revenue in the assessment order finalized under section 143(3) r.w.s. 147 of the Act without being any further addition/disallowance. As relying on Kulwant Singh case [2019 (4) TMI 1287 - ITAT CHANDIGARH] we set aside the finding of the learned CIT(A) and direct the AO to delete the penalty levied by him under the provisions of section 271(1)(c) - Decided in favour of assessee.
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