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2010 (7) TMI 665 - AT - Income TaxPenalty - Undisclosed income - Interest u/s. 234A, 234B & 234C - Search and seizure - It was the submission of the learned counsel that penalty cannot be levied as the assessee had filed return of income and the Department had accepted same in the order passed under section 143(3) r.w.s. 153A., hence, when there is no addition to the returned income penalty cannot be levied - whether immunity is available to the assessee when additional income was disclosed in the return u/s 153A was also considered by the Coordinate Bench in the case of ACIT vs. Kirit Dahyabhai Patel reported in 121 ITD 159 (TM) - since the assessee has filed returns after the search and has not disclosed the income in the original return, the Explanation 5 to section 271(1)(c) cannot give immunity to the assessee there is no explanation why the income earned by way of speculation profit was not disclosed in the original return - in this case no assessment or reassessment proceedings are pending on the date of search, hence, the original return filed has to be taken into consideration - Explanation 1 to Section 271(1)(c) can not be invoked as there is no bonafide explanation given why this income was not disclosed at the time of filing original return - Decided against the assessee
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