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2010 (6) TMI 641 - AT - Income TaxPenalty levied u/s 271(1)(c) - jewellery found in search did not match with the reconciliation chart in respect of weight and description of items - as per CIT(A) Order of penalty is passed only because the assessed income is higher than the returned income. However, penalty cannot be treated as a mandatory act in consequence of such difference, thus cancelled penalty levy. HELD THAT:- As in S.D.V. Chandru’s case [2003 (12) TMI 40 - MADRAS HIGH COURT], as well as in Kanhaiyalal’s case [2007 (12) TMI 46 - RAJASTHAN HIGH COURT]] after considering the provisions contained in Explanation 5 to section 271(1)(c) held in favour of the assessee to the effect that the immunity under Explanation 5 to section 271(1)(c) is available even in respect of income disclosed for the years earlier to the date of search. Therefore, find no infirmity in the order passed by the learned CIT (A) and the same is hereby upheld as the law is well settled that even when two views are possible, the view which is favourable to the assessee be taken. The revenue’s appeals are dismissed.
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