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2012 (9) TMI 39 - AT - Income TaxPenalty u/s 271(1)(c ) – assessment framed u/s 153A – addition made in respect of long term capital gains and income from bank interest – AY 04-05 - Held that:- Although the assessee could not produce any documentary evidence to support and substantiate his claim of cost of acquisition of shares during the course of assessment proceedings u/s.143(3) r.w.s. 153A which were taken-up after a gap of nine years, we find that there is nothing found either during the course of search or brought on record even during the course of assessment proceedings by the A.O. to show that the cost of acquisition of shares claimed by the assessee was on the higher side and the same was actually lower than what was claimed. Therefore, it was not a case of concealment as envisaged u/s.271(1)(c). Similarly, addition made on account of income from bank interest was based on assumption and surmises and in the absence of anything brought on record to show that such interest income was actually received in A.Y. 2005-06, same cannot be treated as concealed income. Penalty u/s.271(1)(c) is not sustainable AY 07-08 – cash and jewelry found during search – Held that:- Circular No.1916 permits possession of 1450 grams of jewellery whereas the total jewellery found during the course of search was to the extent of 1,442.56 grams. Thus, the same should have been treated as ‘explained’ on the basis of the said Circular. Further, assessee had surrendered the undisclosed cash found during search. Therefore although both the additions made by the A.O. have been accepted by the assessee, the same could not be treated as ‘concealed income’ of the assessee as envisaged in sec.271(1)(c) – Decided in favor of assessee.
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