Penalty u/s 271(1)(c) Dropped: AO Accepts 75% of Expenses, No Evidence of Clandestine Business Found.

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....Levy of penalty u/s. 271 (1)(c) - Allegation of engaged in business of providing accommodation entries - if the AO was of the opinion that the assessee is engaged in a clandestine business then he ought not to have allowed 75% of the expenses and instead should have disallowed the entire expenditure. The action of the AO shows that he was satisfied with the genuineness of 75% of the expense - No penalty - AT....