On appeal by the Department against the order of the Tribunal setting aside the penalty levied on the assessee under section 271(1)(c) of the Income-tax Act, 1961, the High Court allowed the appeal of the Revenue holding that merely because the value added tax authorities had accepted the cash sales set up by the assessee that was not sufficient ground to hold that the cash sales set up by the assessee were genuine, that the Assessing Officer and the appellate authority, had rightly given a finding of fact that the cash sales were not genuine and the assessee had introduced its unaccounted income in the garb of cash sales. The High Court restored the penalty in view of inaccurate particulars of income furnished by the assessee in the garb of fictitious cash sales with a view to claim exemption under section 80IC of the Act.  SLP of assessee is dismissed.(AY. 2007-08)