2014 (1) TMI 138

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..... :- PER : N Kumar These appeals are preferred challenging the order passed by the authorities levying the penalty under Section 271(1)(c) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act' for brevity). 2. The assessee is an individual, engaged in the business of money lending at Haleyangady, Dakshina Kannada District under the name and style of M/s.Sri Durga Credits and Investm .....

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..... in the department and to avoid protracted litigation, offered notional income. Subsequently, a scrutiny assessment was done for the assessment year 2006 - 07 and several additions and disallowances were made. Though there was no real income earned by the assessee and he had actually suffered loss, the assessee in the course of the assessment proceedings accepted the additions and disallowances as .....

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..... see is not true but it is false. Aggreived by the said order, the assessee preferred an appeal before the lower appellate authority. The lower appellate authority dismissed the appeal by confirming the order of the assessing authority. The assessee again preferred an appeal challenging the order of the lower appellate authority before the Tribunal. The Tribunal on reappreciation of the entire mate .....

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..... shown to be false, question of imposing penalty will not arise. In the instant case, there is no finding that the explanation offered by the assessee is false and therefore no penalty should have been imposed.' 4. Learned counsel for the revenue, supported the impugned judgment. 5. It is in this background, when we look at the facts of the case, it is not in dispute that during the course of sur .....

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..... owing the interest claim of Rs.4,63,000/- made on these deposits in the computation of income filed by him. On consideration of this reply, the Three Facts Finding Authorities have concurrently held that not only explanation offered by the assessee is unacceptable but the said explanation is false and therefore, a case for imposing penalty under Section 271 (1) (c) of the Act is made out. This bei .....

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