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2013 (1) TMI 263 - AT - Income TaxPenalty u/s 271(1)(c) - notice under Section 153A - Held that:- A plain look at the copies of the seized material discloses that recordings were made in a systematic manner in a tabular form. The other papers when perused disclose that they are entries made on plain paper with calculations, initials and signatures. When confronted with these pages a group company of the assessee M/s BPTP Ltd. submitted that the expenditure does not pertain to it. It further argued that there is no question of booking the same in its books of accounts. There after M/s Business Park Construction Co.Ltd. the assessee company stated on 24.12.2009 that they are unable to explain these documents. It further stated that, it has no grievance if addition is made on account of these papers subject to no penalty being levied. Thus on facts, the assessee company failed to explain these seized papers and offered the amounts mentioned therein to tax with a condition that no penalty should be levied. On these facts the penalty was rightly levied and upheld by the Ld.CIT(A) as assessee M/s Business Park Construction Co.Ltd. has at no stage attempted to explain the seized documents. The explanation given by M/s BPTP Ltd. of the seized documents, does not come to the rescue of the assessee. The assessee in this case has not stated that the documents in question does not belong to it. It is not the case of the assessee that entries recorded in these documents are not expenditure incurred by it or that they are dumb documents. All that the asssessee stated is that, it is unable to explain the documents. It is well settled that there is no estoppel against law. There is no agreement possible for non levy of penalty. Had the assessee furnished an explanation as regards the seized documents, the question of considering whether such explanation is bonafide or not would arise. In this case the assessee has not attempted to explain any of the seized documents, even during the course of penalty proceedings - appeal decided against assessee.
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