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2019 (4) TMI 1997 - ITAT JAIPURPenalty u/s 271(1)(c) - as argued Non specify in which limb of sec. 271(1)(c) penalty proceedings has been initiated, i.e. whether for concealment of income or furnishing of inaccurate particulars of income - unaccounted stock found in survey - income surrendered on account of unaccounted stock in response to notice u/s 148 - HELD THAT:- Since, there was no return of income filed by the assessee, therefore, the said surrendered made by the assessee in any case includes the business income as well as unaccounted stock. Once, the assessee has disclosed the income on account of unaccounted stock as well as business income for the year under consideration then the addition made by the AO based on the statement of the assessee recorded U/s 133A of the Act would be regarded as without any valid evidence disclosing undisclosed income of the assessee. Therefore, the said addition though accepted by the assessee would not ipso facto lead to the conclusion that the assessee has concealed particulars of income or furnishing inaccurate particulars of income. Assessing Officer has not substantiated the addition by making reference to any incriminating material or other information to indicate such undisclosed income. Therefore, in the facts and circumstances of the case where the addition made by the AO is purely on the basis of the statement recorded U/s 133A of the Act the same would not attract the penalty U/s 271(1)(c) of the Act. Hence, the penalty levied by the AO is deleted. Since we have deleted the penalty levied by the AO on merits, therefore, we do not propose to not into the legal ground raised by the assessee regarding validity of initiation of penalty. Appeal filed by the assessee is allowed.
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