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2017 (5) TMI 1542 - AT - Income TaxPenalty leviable u/s 271(1)(c) - assessee furnished the return of income declaring total income after notice under section 153A - addition of cash investments in purchase of lands - Held that:- Additions made in the case of assessee i.e. on account of cash investments in purchase of lands in different years over and above the registered sale document and the professional receipts which were worked out on the basis of incriminating evidence found during the course of search. The additions have not been made on account of any money, bullion, jewellery or valuable article or thing found from the possession of assessee. Hence, exception clauses provided in Explanation 5 to section 271(1)(c) of the Act are not attracted in the present case. Various arguments raised by the learned Authorized Representative for the assessee are thus, dismissed. In the case of assessee during the course of search, incriminating evidence was found as to the assessee having made cash investment for purchase of plot of land over and above declared value of investment and also undisclosed professional receipts which have not been declared by the assessee, which were admitted by the assessee as his additional income in his statement recorded under section 132(4) - The additions on account of unexplained payments for purchase of plots, which were over and above the investments declared by the assessee in his books of account has been confirmed in the hands of assessee and penalty for concealment under section 271(1)(c) of the Act is squarely leviable. he second plea of the assessee that the suppressed professional income was estimated for the period for which no incriminating document was found does not stand where admittedly, the assessee himself had declared the additional income while filing the return of income under section 153A of the Act. Accordingly, the assessee is exigible to levy of penalty under secton 271(1)(c) of the Act. We hold so. The only question which remains is the determination of penalty leviable which shall be calculated by the Assessing Officer in the respective years on the basis of final income added in the hands of assessee in each of the years. The original grounds of appeal raised by the assessee are thus, dismissed. We find no merit in the plea of assessee where the additional income has been confirmed in the hands of assessee even though part of it was declared by the assessee in the return of income filed under section 153A of the Act but that does not exonerate the assessee from levy of penalty, wherein the assessee has failed to explain the manner in which the income was earned for such investments. Accordingly, we hold so. - Decided against assessee
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