2016 (2) TMI 166

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....he Penalty u/s 271(1)(c) of Rs. 45633/- on the facts and circumstances of the case. 2. The learned CIT (A) erred in not appreciating the fact that addition of Rs. 124170/- made by the AO u/s.41(1)(a) was solely on account of different views taken on the same set of facts which at the best can be termed as difference of opinion and certainly not concealment of income or furnishing of inaccurate particulars of such income. 3. The learned CIT (A) further erred in appreciating the fact that the appellant company was legally bound to entertain the claim of creditor of Rs. 1,24,170/- reflected in appellant company's books of account for a period of three years during which creditor can make their claim for their dues. 2. The only issue ra....

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....ter examining the facts and circumstances of the case, I find that it was due to the efforts of the Assessing Officer the difference in the accounts of M/s. Punit Agency P. Ltd vis a vis books of accounts of the appellant was detected. The addition in the quantum of appeal has already been confirmed by my predecessor, CIT(A) due to cessation of liability amounting to income of Rs. 1,24,170/- in the hands of the appellant company. The argument of the Authorized Representative that this income has been subsequently, offered for taxation in the A.Y. 2006-07 is without any merit and the same is not acceptable. Since the appellant company has furnished inaccurate particulars of income, therefore, it is liable to pay penalty u/s 271(1)(c) of the ....

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....of the assessee had ceased and imposed the penalty of Rs. 45,633/- u/s 271(1)(c) for furnishing the in accurate particulars of income. The assessee submitted before the AO that the said difference was only because of wrong entries in the book of M/S Punit Agency Pvt Ltd and tried to explain the same through a reconciliation statement listing out various reasons of differences which was filed before the AO as well as before the CIT(A) which is placed on page no.20 of the paper book in which the entire difference was explained. The assessee also filed the copies of the bills issued by of M/s. Punit Agency Private Ltd. which is placed at pg no. 21-23 of the paper book. The assessee also filed various payment vouchers on pg. no. 24-26 of the pa....