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2014 (12) TMI 513 - AT - Income TaxLevy of penalty u/s 271(1)(c) – Return filed on the basis of seized papers and documents and not on the basis of cash found – Held that:- The search was carried out on 22.11.2006, as in the said two cases. Certain documents were found and were seized - In the return of income filed u/s 153A of the Act, additional income from trading and commission was disclosed. Concealment penalty was levied on this additional income - as decided in assessee’s own case for the earlier assessment year, the decision in SHRI PREM ARORA Versus DEPUTY COMMISSIONER OF INCOME TAX [2012 (6) TMI 480 - ITAT DELHI] followed, wherein it has been held that for the purpose of imposition of penalty u/s 271(1)(c) of the Act, as a result of search assessments made u/s 153A, the original return of income filed u/s 139 of the Act cannot be considered and that where the return of income filed u/s 153A of the Act is accepted by the Assessing Officer, there will be no concealment of income and, consequently, penalty u/s 271 (1)(c) cannot be imposed - Explanation 5 to section 271(1) of the Act cannot be invoked merely on presumption that the assessee might have been in possession of cash throughout the period covered by search assessments – thus, the order for levying penalty is set aside – Decided in favour of assessee.
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