Penalty cannot be imposed if explanation given by the assessee cannot be brushed aside as totally false

Brief Facts: The assessee company is a Non-Banking Financial Company (NBFC) and filed return of income pursuant to a notice u/s 148 of the Act. The AO made few additions on assessment, which were partly deleted by the CIT (A). The tribunal on appeals, however sustained the major additions made by the AO. The Assessing Officer levied the penalty u/s 271 (1) (C), after the tribunal confirmed the additions. The Assessee went on appeal to the CIT (A) against the penalty order of the AO. The assessee thereafter, filed a second appeal to ITAT against the penalty order confirmed by the CIT(A). Meanwh...